CBRT remains ‘on hold’

FXStreet (Edinburgh) - Matching the broader market consensus, the Turkish central bank (CBRT) has left its monetary policy unchanged in today’s meeting.

The CBRT kept intact the One-week repo rate at 7.5%, the Marginal Funding Rate at 10.75% and the Borrowing Rate at 7.25% in an attempt to guard the domestic economy from increasing consumer prices.

The central bank preferred to keep the cautious stance and emphasized that future monetary policy decisions will hinge on the inflation outlook, adding at the same time that the implementation of the current monetary policy plus ‘prudent’ fiscal and macroprudential policies are having a positive impact on core inflation. As per in the statement: “Inflation expectations, pricing behavior and other factors that affect inflation will be monitored closely and the cautious monetary policy stance will be maintained, by keeping a flat yield curve, until there is a significant improvement in the inflation outlook”.

The lira gained some ground in the wake of the decision, although the weekly bias remains tilted to further downside, specially on the back of the upbeat momentum in the greenback.