At its 17 September monetary policy meeting, the Central Bank of the Republic of Turkey (CBRT) decided to keep the one-week repo rate at 4.50%, a decision that was in line with market expectations. The Bank also maintained the overnight borrowing rate at 3.50% and the overnight lending rate for non-primary dealers at 7.75% (primary dealers: unchanged at 6.75%). In its statement, Central Bank argued that domestic demand continues to expand at a moderate pace and that the current policy framework is helping to improve the current account deficit (excluding the gold trade). While inflation is expected to decline further in the months ahead, the CBRT stated that recent exchange rate volatility poses upside risks to the inflation outlook. In addition, the Monetary Policy Committee maintained its hawkish tone, stating that its current cautious stance - which might include additional monetary tightening - will remain in place until inflation returns to the medium-term target. FocusEconomics Consensus Forecast panelists see the one-week repo rate ending the year at 4.75%. For 2014, the panel expects the rate to rise to 5.46%.
Turkey Monetary Policy
Central Bank remains on hold
September 17, 2013
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Turkey Monetary Policy Chart
Note: 1-week repo rate in %, from 25 May 2010 onwards. From January 2008 until 25 May 2010, data refer to overnight borrowing rate.
Source: Central Bank of the Republic of Turkey (CBRT).
Turkey Economic News
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.
October 3, 2016
In September, consumer prices increased 0.18% over the previous month.
September 26, 2016
The Real Sector Confidence Index published by the Central Bank increased from August’s 103.6 to 106.5 in September.