Türkiye holds interest rates unchanged

ANKARA (AA) - The Turkish Central Bank on Thursday kept its one-week repo rate, also known as the policy rate, unchanged at 9% in line with market expectations.

"Considering the increasing risks regarding global demand, the Committee evaluated that the current policy rate is adequate," the bank said in a statement following its last Monetary Policy Committee meeting of the year.

It stressed that it would decisively use the tools supporting the effectiveness of the monetary transmission mechanism and that the entire policy toolset, particularly funding channels, will be aligned with its liraization targets.

"Stability in the general price level will foster macroeconomic stability and financial stability through the fall in country risk premium, continuation of the reversal in currency substitution and the upward trend in foreign exchange reserves, and durable decline in financing costs. This would create a viable foundation for investment, production and employment to continue growing in a healthy and sustainable way," it added.

At its November meeting, the bank cut the rate by 150 basis points to 9%, thus having lowered the key rate by 500 basis points, or 5 percentage points, since August.

According to the latest data from the Turkish Statistical Institute (TurkStat), Türkiye's annual consumer inflation rate was 84.39% in November, down from 85.51% in October.

All economists surveyed by Anadolu Agency on Tuesday predicted the policy rate would be kept steady at 9%.