Turkey leaves monetary policy unchanged

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The Central Bank of the Republic of Turkey left its benchmark interest rate unchanged at the effective lower bound of 19.00 %, as widely expected. The Committee said the current tight monetary policy stance will be maintained decisively until a significant fall in inflation towards the April Inflation Report’s forecast path is achieved. Policymakers noted that the strong economic growth has been supported by solid external demand, despite the deceleration of domestic demand in the second quarter due to pandemic restrictions and the tightening in financial conditions.

USDTRY saw relatively small reaction to today’s CBRT interest rate decision. Currency pair continues to trade around 8.60 level. Source: xStation5

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Turkey leaves monetary policy unchanged

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