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Turkey keeps interest rate constant

The Central Bank has decided to maintain the one-week repo rate at 8.5 percent.

"Although recently released data point to a stronger economic activity than anticipated, recession concerns in developed economies as a result of geopolitical risks and interest rate hikes continue, and conditions threatening financial stability, triggered by successive bank failures, have emerged," the bank said in a statement today after a meeting of its Monetary Policy Committee.

"While the negative consequences of supply constraints in some sectors, particularly basic food, have been alleviated by the strategic solutions facilitated by Türkiye, the high level in producer and consumer inflation continues on an international scale.

"While level and underlying trend of inflation have been improved with the support of the implemented integrated policy approach, the effect of earthquake-driven supply-demand imbalances on inflation is closely monitored.

"Accordingly, the Committee has decided to keep the policy rate unchanged. The CBRT will continue to use all available instruments decisively until strong indicators point to a permanent fall in inflation and the medium-term 5 percent target is achieved in pursuit of the primary objective of price stability."

Central Bank's course of policy rate changes

In the period when Central Bank Governor Murat Çetinkaya was removed from office on July 6, 2019 and Murat Uysal was appointed in his place

In July 2019, from 24 percent to 19.75 percent

In September 2019, from 19.75 percent to 16.50 percent

In October 2019, from 16.50 percent to 14 percent

In December 2019, from 14 percent to 12 percent

In January 2020, from 12 percent to 11.25 percent

In February 2020, from 11.25 percent to 10.75 percent

In March 2020, from 10.75 percent to 9.75 percent

In April 2020, from 9.75 percent to 8.75 percent

In May 2020, from 8.75 percent to 8.25 percent

In September 2020, from 8.25 percent to 10.25 percent

In October 2020, from 10.25 percent to 15 percent

In the period when Murat Uysal was removed from office as the Central Bank Governor and Naci Agbal was appointed in his place

In December 2020, from 15 percent to 17 percent

In March 2021, from 17 percent to 19 percent

In the period when Naci Agbal was removed from office on March 20, 2021 and Sahap Kavcioglu was appointed in his place

In September 2021, from 19 percent to 18 percent

In October 2021, from 18 percent to 16 percent

In November 2021, from 16 percent to 15 percent

In December 2021, from 15 percent to 14 percent

In August 2022, from 14 percent to 13 percent

In September 2022, from 13 percent to 12 percent

In October 2022, from 12 percent to 10.5 percent

In November 2022, from 10.5 percent to 9 percent

In December 2023, from 9 percent to 8.5 percent

* In the months that are not indicated in this table, the policy rate was kept unchanged (The Monetary Policy Committee of the Central Bank convenes every month).

Source: English Bianet