The Central Bank of Turkey held its one-week repo auction rate at 24 percent during its June meeting, saying that a tight monetary policy supports the disinflation process. Annual inflation fell to a nine-month low of 18.71 percent in May, easing further from October's 15-year peak of 25.24 percent after a currency crisis plunged the economy into its first recession in a decade.
Statement by the Central Bank of the Republic of Turkey:
Recently released data show that rebalancing trend in the economy has continued. External demand maintains its relative strength while economic activity displays a slow pace, partly due to tight financial conditions. Current account balance is expected to maintain its improving trend.
Developments in domestic demand conditions and the tight monetary policy support disinflation. In order to contain the risks to the pricing behavior and to reinforce the disinflation process, the Committee has decided to maintain the tight monetary policy stance.
The Central Bank will continue to use all available instruments in pursuit of the price stability objective. Factors affecting inflation will be closely monitored and, monetary stance will be determined to keep inflation in line with the targeted path.
It should be emphasized that any new data or information may lead the Committee to revise its stance.
The summary of the Monetary Policy Committee Meeting will be released within five working days.
6/12/2019 11:22:51 AM