Summaries of the CBRT meeting, where the surprise interest rate increase came, have been published – Last Minute Economic News

The Central Bank of the Republic of Turkey (CBRT) published the summaries of the Monetary Policy Committee meeting, where the decision to increase interest rates by 500 basis points was taken.

CBRT evaluated that leading indicators pointed to a slowdown in the main trend of inflation in March.

CBRT, which published the summary of the decision in which it surprisingly increased the policy rate by 500 basis points and expanded the overnight borrowing/lending interest margins to 300 basis points compared to the one-week policy rate, said: “On the other hand, despite the slowdown in question, the main trend is slightly below the level predicted in the Inflation Report.” “It is considered to be above,” he said.

CBRT gave the following messages in the summaries of the meeting where the policy rate was increased by 500 basis points:

According to preliminary data, while price increases increased slightly in the core goods group in March compared to the previous month, they slowed down in other groups, especially energy.

Food prices, which rose significantly in the previous month with the influence of Ramadan, see more moderate increases in this period, also with the influence of vegetable prices.

Although the monthly price increase in services remains high, it is expected to lose strength compared to February.

The Board decided to increase the policy rate, taking into account the deterioration in the inflation outlook. The tight monetary policy stance will be maintained until a significant and permanent decline in the underlying trend of monthly inflation is achieved and inflation expectations converge to the predicted forecast range.

If a significant and permanent deterioration in inflation is predicted, the monetary policy stance will be tightened.