Turkey: CBRT says current tight monetary policy stance will be maintained

Dhwani Mehta FXStreet

“Current tight monetary policy stance will be maintained decisively until the significant fall in the April inflation report's forecast path is achieved,” the Central Bank of the Republic of Turkey (CBRT) said in a statement on Friday.

Additional headlines

“Rate continues to be determined at a level above inflation to maintain a strong disinflationary effect.”

“Use decisively all available instruments.”

‘Repeats decelerating impact of the monetary tightening on credit and domestic demand has begun to be observed.”

Separately, Turkish Finance Minister Lutfi Elvan said that the government will not give up on our inflation target for short-term gains.

“Decisive stance and policies will help bring down inflation expectations,” he added.

Read: Turkey: CBRT leaves policy rate unchanged at 19% as expected

Market reaction

USD/TRY is off the eight-day tops of 8.7375, thanks to the retreats in the US Treasury yields and the greenback.

The spot now trades at 8.6820, down 0.32% on the day, unperturbed by the above comments.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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