Central Bank’s Monetary Policy Committee Meeting Scheduled for July 23
The Central Bank of the Republic of Turkiye (CBRT) will reveal its much-anticipated interest rate decision on Tuesday, July 23. Led by Governor Fatih Karahan, the Monetary Policy Committee (PPK) will convene to deliberate on monetary policy amidst ongoing inflationary pressures and economic uncertainties.
In the previous meeting, the committee maintained the policy rate at 50%. The decision, to be announced at 2:00 PM on the same day, will follow a comprehensive evaluation of economic indicators and inflation trends.
‘Monitoring Inflation Expectations and Pricing Behaviors Closely’
In its last statement, the committee highlighted the temporary interruption in the weakening trend of monthly inflation in May. Indicators suggest that although domestic demand remains inflationary, it is showing signs of slowing down. High service inflation, inflation expectations, geopolitical risks, and food prices continue to exert inflationary pressures.
The committee has been closely monitoring the effects of monetary tightening on credit and domestic demand, reiterating a cautious stance against upward inflation risks. The commitment to maintaining a tight monetary policy will persist until a significant and lasting reduction in the main trend of monthly inflation is achieved, and inflation expectations converge with forecasted ranges.
Should there be a marked and lasting deterioration in inflation, the committee is prepared to further tighten its monetary stance. Any unforeseen developments in the credit and deposit markets will be addressed with additional macroprudential measures to support the monetary transmission mechanism.
Liquidity developments are under close scrutiny, with sterilization tools to be utilized effectively and diversified as needed. The committee’s policy decisions will aim to establish monetary and financial conditions conducive to reducing the main trend of inflation and achieving a medium-term inflation target of 5%. The primary goal remains price stability, with the committee poised to utilize all available tools decisively.
Source: Trthaber / Prepared by Irem Yildiz