The Monetary Policy Committee (PPK) of the Central Bank of the Republic of Türkiye (CBRT) will meet today under the chairmanship of Central Bank Governor Fatih Karahan.
The interest rate decision will be announced at 2 p.m. At the MPC meeting in October, it was decided to reduce the one-week repo auction rate, which is the key interest rate, from 40.5 percent to 39.5 percent.
CBRT President Karahan emphasizes fighting inflation
Fatih Karahan, Governor of the Central Bank of the Republic of Turkey (CBRT), said: “The tight monetary policy stance, which will be maintained until price stability is achieved, will strengthen the disinflation process through demand, exchange rate and expectations channels.”
“Rate cuts can be effective when inflation is under control”
Explaining that lending rates are influenced by inflation and inflation expectations, Karahan shared his views: “Interest rate cuts can only be effective when inflation is under control. When inflation expectations improve, loan and bond rates fall. The fall in policy rates is reflected in market rates.”
Karahan explained that the share of long-term loans increased during the tightening period:
“The tight monetary policy stance, which must be maintained until price stability is achieved, will strengthen the disinflation process through demand, exchange rate and expectations channels. The Board will determine the steps to be taken in relation to the key interest rate in such a way as to ensure the tightening necessary for disinflation in line with the interim targets, taking into account the inflation insights, the main trend and the expectations of the interim targets, the monetary policy stance will be tightened.”
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