Türkiye: CBRT leaves one-week repo rate unchanged at 9%

The Central Bank of the Republic of Türkiye (CBRT) announced on Thursday that it left the policy, one-week repo, rate unchanged at 9% following the December policy meeting, as expected.

Key takeaways from policy statement as summarized by Reuters

“CBRT expects disinflation process to start on the back of measures taken.”

“It is critically important that financial conditions remain supportive.”

“Current policy rate is adequate.”

“Leading indicators for the last quarter of the year continue pointing to a slowdown in growth due to the weakening foreign demand.”

“Effects of foreign demand-based pressures observed in the manufacturing industry on domestic demand and supply capacity currently remain limited.”

“Entire policy toolset, particularly funding channels, will be aligned with liraization targets.”

Market reaction

USD/TRY pair showed no reaction to the CBRT’s policy decision and was last seen trading flat on the day at 18.6740.

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