Central Bank’s Monetary Policy Committee to meet for rates this week

ANKARA

The Central Bank’s Monetary Policy Committee (MPC) will meet to decide on the key interest rate on Dec. 22.

This will be the bank’s last rate-setting meeting for 2023.

Last month, the bank slashed its policy rate (one-week repo auction rate) from 10.5 percent to 9 percent.

Analysts expect the Central Bank to keep the policy rate unchanged at 9 percent at the upcoming meeting this week.

“The committee expects the disinflation process to start on the back of measures taken and decisively implemented for strengthening sustainable price and financial stability along with the resolution of the ongoing regional conflict,” the bank said in the minutes of the last MPC meeting.

Considering the increasing risks regarding global demand, the committee evaluated that the current policy rate is adequate and decided to end the rate cut cycle that started in August, the statement added.

The bank reiterated that it will continue to use all available instruments decisively within the framework of liraization strategy until strong indicators point to a permanent fall in inflation and the medium-term 5 percent target is achieved in pursuit of the primary objective of price stability.

The annual inflation rate slipped from 85.5 percent October to 84.39 percent in November with consumer prices advancing 2.3 percent on a monthly basis.

Inflation will continue its downward trend, Treasury and Finance Minister Nureddin Nebati said earlier last week.

“We have entered a path where inflation will exhibit declines each month,” Nebati told lawmakers in parliament on Dec. 12.