Turkey: Central Bank leaves key rates unchanged for ninth consecutive month
November 24, 2015
At its 24 November monetary policy meeting, the Central Bank (CBRT) decided to maintain all its main policy rates unchanged for the ninth consecutive month, as was widely expected. The CBRT left unaltered the one-week repo rate at 7.50%, the borrowing rate at 7.25% and the marginal funding rate at 10.75%.
Almost mirroring the previous statement, the CBRT commented that amidst a backdrop of tight monetary policy and macro-prudential measures, loan growth remains at moderate levels. That said, this time, the Bank acknowledged that net exports are contributing to overall growth mainly due to rising demand from the European Union.
Regarding price developments, the Central Bank stated that energy price dynamics are having a favorable impact on inflationary pressures; however, this favorable effect is delayed by exchange rate movements. The Bank added that considering this delay and high levels of uncertainty in global markets, the CBRT decided to maintain a tight liquidity policy for as long as deemed needed.
Looking forward, the Bank commented that, “future monetary policy decisions will be conditional on the inflation outlook.” Moreover, the Bank reaffirmed its tight monetary policy stance by stating that, “the tight monetary policy stance will be maintained.” The next monetary policy meeting is scheduled for 22 December.