CBRT: The Committee will determine the steps regarding the policy interest rate with a cautious, meeting-based approach focused on the inflation outlook.

The Central Bank of the Republic of Turkey (CBRT) announced that it will determine actions regarding the policy interest rate with a focus on the inflation outlook, adopting a cautious and meeting-based approach. The summary of the Monetary Policy Committee (MPC) meeting held on March 6 was published.

The summary stated that a firm stance in monetary policy has strengthened the disinflation process through balancing domestic demand, real appreciation of the Turkish lira, and improvements in inflation expectations. The report highlighted that increased coordination in fiscal policy will also significantly contribute to this process. A tight monetary policy stance will be maintained until a permanent decline in inflation and price stability are achieved. The committee will set the policy interest rate based on inflation developments, core trends, and expectations, ensuring that necessary tightness for the anticipated disinflation process is achieved.