Turkey Central Bank Keeps Rate Unchanged

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Turkey’s central bank left its key interest rates unchanged for the third straight month, as expected.

The Monetary Policy Committee of the Central Bank of the Republic of Turkey, led by Governor Murat Uysal, decided to hold the policy rate, which is the one-week repo auction rate, at 8.25 percent and to continue liquidity measures.

The bank had reduced the rate four times so far this year. Last reduction was in May, when the rate was cut by 50 basis points.

The bank said the monetary stance will be determined by considering the indicators of the underlying inflation trend to ensure the continuation of the disinflation process.

Economic recovery, which started in May following gradual steps towards normalization, is gaining pace, the bank noted.

Policymakers observed that monetary and fiscal measures taken to contain the negative effects of the coronavirus pandemic have helped economic recovery by supporting the potential output of the economy.


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