Central Bank moves to increase market mechanisms’ functionality

ANKARA

Türkiye’s Central Bank has announced a measure aimed at simplifying its micro and macroprudential framework.

In a statement released on June 25, the bank recalled that the Monetary Policy Committee (MPC) said following the rate-setting meeting on June 22 that the existing micro and macroprudential framework would be gradually simplified, guided by impact analyses.

“As a first step in this context, the securities maintenance regulation is simplified to increase the functionality of market mechanisms and strengthen macro financial stability, and published in the Official Gazette,” the statement said.

The simplification process will continue in a gradual manner in line with the principles announced by the Monetary Policy Committee, it added.

At the June 22 meeting, the MPC decided to increase the policy rate - one-week repo auction rate - from 8.5 percent to 15 percent.

Finance Minister Mehmet Şimşek said that the economic policies aim to ensure price stability and achieve financial stability in the short term.

“We are determined in attaining price stability, financial stability and macroeconomic stability. We’ll continue to do what it takes to get there,” he wrote on Twitter.

As highlighted in the Monetary Policy Committee statement on June 222, the path towards price stability is going to be gradual but steadfast, Şimşek said.

“All economic units rolled up their sleeves to fight inflation. I am confident that we will do this in a stable and determined manner,” Central Bank Governor Hafize Gaye Erkan told reporters on June 23 following a meeting with members of the Banks Association of Türkiye (TBB).

She added that bankers convened their demands to be met during the simplification process.