The Central Bank Announced Its Interest Rate Decision After the Meeting! The Central Bank of the Republic of Turkey held a Monetary Policy Committee meeting today at 14:00. Following the meeting, the Bank announced an interest rate cut. The Bank decided to reduce the one-week repo auction rate by 75 basis points. Accordingly, after the Monetary Policy Committee meeting concluded at 14:00 today, a rate cut was implemented. The one-week policy interest rate was lowered by 75 basis points from 12.00% to 11.25%.
In its rate announcement, the Central Bank (CBRT) stated that the Monetary Policy Committee, chaired by Governor Murat Uysal, decided to cut the policy rate from 12.00% by 75 basis points to 11.25%.
Central Bank’s Post-Meeting Statements
In the post-meeting statements, a notable point was that recent data indicate the recovery in economic activity is continuing. The Bank noted that the improvement is ongoing, although investment remains weak. The statement highlighted several issues: while competitiveness developments have continued in a positive direction, weakening global growth is partially slowing external demand. The contribution of net exports to growth has declined, but the disinflation process and improved financial conditions are expected to support the continuation of the economy’s recovery.
Recent, marked improvements in the current account balance—supported by policy measures—are expected to lead to a moderate path going forward. The weak global economic activity and low global inflation have raised expectations that central banks in advanced economies will maintain accommodative policies. Current global financial conditions and partial improvements in expectations for global trade have supported demand for emerging market financial assets and revived risk appetite. At the same time, the Bank said it will closely monitor the effects of protectionist measures, policy uncertainties in the global economy, and geopolitical developments on capital flows, foreign trade, and commodity prices.
The current monetary policy stance remains consistent with the targeted disinflation path. The announcement also emphasized that the improvement in the inflation outlook continues and that the process of broad-based improvement in inflation expectations is ongoing.