CBRT keeps policy rate (one-week repo auction rate) unchanged at 24%

Eren Sengezer FXStreet

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.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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