In a widely expected decision, the Central Bank of the Republic of Turkey (CBRT) today announced that it kept the policy rate (one-week repo auction rate) constant at 24%. With the initial reaction, the USD/TRY pair gained more than 500 pips in a matter of minutes and jumped to its highest level since early October at 5.9627. At the moment, the spot is up 1.3% on the day at 5.94.
Key takeaways from the press release
- Recently released data show that rebalancing trend in the economy has continued.
- Current account balance is expected to maintain its improving trend.
- Developments in domestic demand conditions have led to some improvement in inflation indicators.
- Higher food and import prices and the elevated course of inflation expectations point to continued risks to price stability.
- Accordingly, the Committee has decided to maintain the tight monetary policy stance until inflation outlook displays a significant improvement.
- The Central Bank will continue to use all available instruments in pursuit of the price stability objective.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.