The Monetary Policy Committee of the Central Bank of the Republic of Turkey (CBRT) met today under the chairmanship of Central Bank Governor Şahap Kavcıoğlu.

The seventh interest rate decision of the year has been announced. The Central Bank did not change its decision on interest rates this month. He kept the key rate unchanged at 14%.


The text of the decisions taken by the Monetary Policy Committee was shared by the CBRT, and the following statements were included in the decision:

Geopolitical risks, the effects of which continue to increase, continued to have a negative impact, causing a further weakening of economic activity in the world. Global growth forecasts for the period ahead continue to be revised downwards and the likelihood of a recession is increasing. Growing uncertainties about global food security due to trade bans, high and volatile commodity price developments and continued supply constraints in some sectors, particularly staple foods, are driving up prices to production and consumption on an international scale. The effects of high global inflation on inflation expectations and international financial markets are being closely watched. However, central banks in developed countries point out that the rise in inflation could take longer than expected due to rising energy prices, the mismatch between supply and demand and the rigidity labor markets. According to the economic prospects which differ according to the countries, the divergence continues in the monetary policy measures and the communications of the central banks of the developed countries. It is observed that efforts to find solutions with new practices and support tools developed by central banks to increase uncertainty in financial markets have increased by diversifying.


The strong growth at the start of the year continued in the second quarter under the positive effect of foreign demand. Employment gains are more positive than in comparable economies. While the share of sustainable components in the composition of growth has increased, the strong improvement in the current account balance due to tourism continues. In addition, high energy prices and the possibility of a recession in the main export markets are maintaining current account risks. It is important for price stability that the current account balance becomes permanent at sustainable levels. Although we see that it has lost momentum, the rate of credit growth and the meeting of accessible financial resources with economic activity in accordance with its vocation are closely monitored. The Council will resolutely implement the macroprudential policy it has strengthened and, if necessary, will implement additional measures.


In the observed rise in inflation; The increase in energy costs caused by geopolitical developments, the effects of price formations far removed from economic fundamentals and the strong negative supply shocks caused by increases in the world prices of energy, food and agricultural raw materials continue to have an influence. The Council foresees that the process of disinflation will begin with the restoration of the environment of global peace, as well as the measures taken and implemented with determination to strengthen sustainable price stability and financial stability. In this context, the Board decided to keep the policy rate constant. In order to institutionalize price stability in a sustainable manner, the CBRT continues to examine an overarching policy framework that encourages permanent and enhanced integration across all policy instruments. Credit, guarantee and liquidity policy measures, for which the assessment processes have been completed, will continue to be used to strengthen the effectiveness of the monetary policy transmission mechanism.


In line with its main objective of price stability, the CBRT will resolutely continue to use all the tools at its disposal within the framework of the debt consolidation strategy, until the emergence of strong indicators indicating a permanent decline in inflation and the medium-term objective of 5% has been achieved. The stability to be achieved in the general price level will positively affect macroeconomic stability and financial stability through the fall in country risk premiums, the continuation of the reverse substitution of currencies and the upward trend in foreign exchange reserves, and the fall permanent financing costs. Thus, a fertile ground will be formed for the further growth of investment, production and employment in a healthy and sustainable manner.

The Council will continue to make its decisions in a transparent, predictable and data-driven framework.

The summary of the monetary policy committee meeting will be published within five working days.

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