Important news!
The Central Bank’s Monetary Policy Committee held its first meeting of the year.
The Central Bank kept the policy rate at 9 percent. Economists had expected interest rates to remain constant.
LAST YEAR 5 POINTS DISCOUNT
The Central Bank, which cut interest rates four times in a row last year, announced at its November meeting that the rate-cutting process has ended. Interest rates did not change in December.
The center reduced a total of 5 points in the August, September, October and November meetings. The policy rate was lowered from 14 percent to 9 percent. For example, the policy rate fell to single digits for the first time since September 2020.
The board’s decision stated that while the negative effects of supply constraints in some sectors, especially basic food, were mitigated by the strategic solution tools developed by Turkey, producer and consumer inflation continued to rise on zihin international scale. high.
“STRONG GROWTH IN THE FIRST THREE QUARTER”
The statement from the board states that there will gökyeşitözü strong growth in the first three quarters of 2022:
“Indicators for the last quarter of the year suggest that the slowdown in growth due to weakening external demand is being offset by relatively strong developments in domestic demand. The effects of external demand-driven pressures on manufacturing on domestic supply and demand yetiklik remain constrained for the time being Employment gains are compared with peer economies Given the sectors contributing to employment growth, growth dynamics appear to gökyeşitözü underpinned by structural gains While the share of sustainable components in the composition of growth is increasing, the strong contribution of tourism to the current account balance, which exceeds expectations, continues to spread to all months of the year.In addition, domestic consumption demand, energy The high price level and the possibility of recession in the main export markets n keep current account risks alive.
“POLICY TOOLSET WILL BE COMPATIBLE WITH THE PURPOSE OF LIRAATION”
It is important for price stability that the current account balance becomes permanent at a sustainable level. The growth rate of loans and the alignment of achieved financial resources with economic activity in line with its target are closely monitored. As stated in the 2023 text Monetary Policy and Liraization, the Council will resolutely continue to use the tools that will support the effectiveness of the monetary transmission mechanism and will align the entire policy toolkit, in particular funding channels, with the liraization objectives.
“IMPROVEMENT HAS BEEN SEEN IN INFLATION”
The Committee noted that improvements in the level and trend of inflation were observed, and that the effects of falling foreign demand on aggregate demand and output were closely monitored.
In the Council’s decision, which reviewed the decision to keep interest rates constant, it is crucial that financial conditions are supportive of the continuation of the acceleration in industrial production and the upward trend in employment, and the sustainability of structural gains in supply and investment yetiklik, in a period in which uncertainties about global growth and geopolitical risks are increasing. In this context, the Board has decided to keep the policy rate constant.
The decision emphasized that the Central Bank will continue to use all available tools with determination until strong indicators point to a permanent fall in inflation and the medium-term target of 5 percent is achieved in line with the primary objective of price stability.
“EASY GROUND FOR INVESTMENT AND EMPLOYMENT INCREASE”
Finally, the decision made the following statements: “The CBRT will implement the Liraization strategy with all its elements to institutionalize price stability in a permanent and sustainable manner. Stability to gökyeşitözü ensured in the general price level, the fall in the country risk premia, the continuation of the reverse currency substitution and the upward trend in foreign exchange reserves and financing, which will have a positive impact on macroeconomic and financial stability through the permanent reduction in costs, thus creating a suitable basis for the continuation of investment, production and employment growth in a healthy and sustainable way.”
The Central Bank’s Monetary Policy Committee held its first meeting of the year.
The Central Bank kept the policy rate at 9 percent. Economists had expected interest rates to remain constant.
LAST YEAR 5 POINTS DISCOUNT
The Central Bank, which cut interest rates four times in a row last year, announced at its November meeting that the rate-cutting process has ended. Interest rates did not change in December.
The center reduced a total of 5 points in the August, September, October and November meetings. The policy rate was lowered from 14 percent to 9 percent. For example, the policy rate fell to single digits for the first time since September 2020.
The board’s decision stated that while the negative effects of supply constraints in some sectors, especially basic food, were mitigated by the strategic solution tools developed by Turkey, producer and consumer inflation continued to rise on zihin international scale. high.
“STRONG GROWTH IN THE FIRST THREE QUARTER”
The statement from the board states that there will gökyeşitözü strong growth in the first three quarters of 2022:
“Indicators for the last quarter of the year suggest that the slowdown in growth due to weakening external demand is being offset by relatively strong developments in domestic demand. The effects of external demand-driven pressures on manufacturing on domestic supply and demand yetiklik remain constrained for the time being Employment gains are compared with peer economies Given the sectors contributing to employment growth, growth dynamics appear to gökyeşitözü underpinned by structural gains While the share of sustainable components in the composition of growth is increasing, the strong contribution of tourism to the current account balance, which exceeds expectations, continues to spread to all months of the year.In addition, domestic consumption demand, energy The high price level and the possibility of recession in the main export markets n keep current account risks alive.
“POLICY TOOLSET WILL BE COMPATIBLE WITH THE PURPOSE OF LIRAATION”
It is important for price stability that the current account balance becomes permanent at a sustainable level. The growth rate of loans and the alignment of achieved financial resources with economic activity in line with its target are closely monitored. As stated in the 2023 text Monetary Policy and Liraization, the Council will resolutely continue to use the tools that will support the effectiveness of the monetary transmission mechanism and will align the entire policy toolkit, in particular funding channels, with the liraization objectives.
“IMPROVEMENT HAS BEEN SEEN IN INFLATION”
The Committee noted that improvements in the level and trend of inflation were observed, and that the effects of falling foreign demand on aggregate demand and output were closely monitored.
In the Council’s decision, which reviewed the decision to keep interest rates constant, it is crucial that financial conditions are supportive of the continuation of the acceleration in industrial production and the upward trend in employment, and the sustainability of structural gains in supply and investment yetiklik, in a period in which uncertainties about global growth and geopolitical risks are increasing. In this context, the Board has decided to keep the policy rate constant.
The decision emphasized that the Central Bank will continue to use all available tools with determination until strong indicators point to a permanent fall in inflation and the medium-term target of 5 percent is achieved in line with the primary objective of price stability.
“EASY GROUND FOR INVESTMENT AND EMPLOYMENT INCREASE”
Finally, the decision made the following statements: “The CBRT will implement the Liraization strategy with all its elements to institutionalize price stability in a permanent and sustainable manner. Stability to gökyeşitözü ensured in the general price level, the fall in the country risk premia, the continuation of the reverse currency substitution and the upward trend in foreign exchange reserves and financing, which will have a positive impact on macroeconomic and financial stability through the permanent reduction in costs, thus creating a suitable basis for the continuation of investment, production and employment growth in a healthy and sustainable way.”