At its 16 August meeting, the Central Bank of the Republic of Turkey (CBRT) left the one-week policy rate unchanged at 5.75%, as was expected by the market. The Central Bank also held the overnight borrowing rate steady at 5.00%, and left the overnight lending rate at 11.50% (11.00% for primary dealers). The Bank reiterated that the rebalancing process between external and domestic demand continues and therefore the current account balance is expected to continue to improve. According to the CBRT, domestic demand is showing a modest recovery, while exports continue to grow despite a weakening global outlook. Regarding price developments, the Central Bank expects inflation to follow a downward trend in the coming months. Monetary authorities, however, added that "pricing behaviour should be closely monitored as inflation will continue to stay above the target for some time". The CBRT also stated explicitly that "the interest rate corridor may be narrowed gradually in the forthcoming period", likely indicating that the Central Bank will cut the upper band of the corridor in the coming months, as inflationary pressures continue to ease progressively.
Turkey Monetary Policy
Central Bank keeps rates unchanged, hints at future easing
September 6, 2012
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Turkey Economic News
October 21, 2016
The consumer confidence index, published by the Statistical Institute in cooperation with the Central Bank, decreased slightly from 74.3 in September to 74.0 in October.
October 20, 2016
At its 20 October monetary policy meeting, the Central Bank of the Republic of Turkey (CBRT) decided to keep the marginal funding rate unchanged at 8.25%.
October 13, 2016
The current account balance recorded a USD 1.8 billion deficit in August (July: USD 2.7 billion deficit).
October 10, 2016
In August, industrial production expanded a calendar-adjusted 2.2% compared to the same month last year.
October 3, 2016
The Manufacturing Purchasing Managers’ Index (PMI), produced by the Istanbul Chamber of Industry (ICI) and IHS Markit, increased slightly to 48.3 in September from August’s 47.0, which had marked a multi-year low.