Central Bank Does Not Change Interest Rate

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Meeting under the chairpersonship of Murat Çetinkaya, The Monetary Policy Committee of the Central Bank has decided not to change interest rates.

According to the decision, the one-week repo rate, which is also called the political interest rate, will be kept fixed at its current level of 24 percent.

The Central Bank said that the figures announced signalize the tendency towards the rebalancing of the economy.

"While the foreign demand relatively holds its power, economic actions, with the effect of the strictness of the financial conditions, are progressing slowly. The tendency of recovery in the current account balance is expected to continue" the Central Bank said.

The Central Bank added that risks against price stability continue.

"Strict monetary stance" will continue

The Central Bank stated that "the strict monetary stance" will be preserved until there is a significant recovery regarding the inflation rates.

After the Turkish lira sharply lost value in 2018, the Central Bank increased the political interest rate 9.25 percent to 16.50 percent on June 1. One week later, the political interest rate was increased to 19.25. On September 14, the Central Bank increased the interest rate to 24 percent.

The inflation rate was measured as 25.24 percent in October in 2018, a figure recorded as highest in 15 years.

The next meeting of the The Monetary Policy Committee of the Central Bank will be held on April 25. (HA/VK)