Türkiye: CBRT leaves policy rate unchanged at 14% in July

The Central Bank of the Republic of Türkiye (CBRT) left its benchmark interest rate, the one-week repo rate, unchanged at 14.00% as expected on Thursday.

Key takeaways from policy statement via Reuters

"Despite losing momentum, credit growth, and allocation of funds for real economic activity purposes are closely monitored."

"Will continue to implement the strengthened macroprudential policy set decisively and take additional measures when needed."

"Will continue to use all available instruments decisively within the framework of liraization strategy until strong indicators point to a permanent fall in inflation."

"Effects of high global inflation on inflation expectations and international financial markets are closely monitored."

"Stability in the general price level will foster macroeconomic stability and financial stability."

"Tourism-led improvement in current account balance continues with a solid pace."

"High course of energy prices and the likelihood of a recession in main trade partners keep the risks on current account balance alive."

Market reaction

USD/TRY retreated from 2022-highs after the CBRT's policy announcements and was last seen trading at 17.6675, where it was up 0.35% on a daily basis.