Central Bank of the Republic of Turkey to Announce October Interest Rate Decision on October 22

While the Central Bank of the Republic of Turkey (CBRT) kept the policy rate constant at 37 percent in September, it was reported that the eagerly awaited October interest rate decision by the markets will be announced on October 22.

At its latest Monetary Policy Committee (MPC) meeting held in September, the CBRT kept the one-week repo auction interest rate at 37 percent; while keeping the overnight lending interest rate at 40 percent and the borrowing interest rate at 35.5 percent. In the decision text published after the meeting, it was stated that leading indicators pointed to a decline in the underlying trend of inflation and that the weak course in domestic demand continued.

Additionally, the committee text drew attention to the fact that geopolitical developments posed upside risks on inflation through energy prices. While stating that the tight monetary policy stance will be maintained until price stability is achieved, a message was given that the monetary policy stance could be tightened in the event of a significant and permanent deterioration in the inflation outlook.