Turquía - Tasa de Interés

The Central Bank of Turkey slashed its one-week repo auction rate by another 200bps to 12 percent during its December meeting, defying market expectations of a 150bps cut. It follows a 250bps rate cut in October as inflation expectations displayed a wide-spread decline while the economic activity continues to improve. Policymakers also said that the current monetary policy stance is considered to be consistent with the projected disinflation path.

The Central Bank of Turkey slashed its one-week repo auction rate by 250bps to 14 percent during its October meeting, more than market expectations of a 100bps cut. It follows a 325bps rate cut in September, as inflation outlook continues to improve amid a moderate recovery in economic activity. Inflation declined to single digits in October mainly due to a slowdown in cost of food and housing.

The Central Bank of Turkey lowered its one-week repo auction rate by 325bps to 16.50 percent during its September meeting, against market expectations of a 250bps cut. It follows a 425bps rate cut in July as the inflation outlook continues to improve amid a moderate recovery in economic activity. Inflation dropped to 15 percent in August and is expected to fall briefly to single digits in October.

The Central Bank of Turkey slashed its one-week repo auction rate by 425bps to 19.75 percent during its July meeting, more than market expectations of a 250bps cut, saying inflation outlook continued to improve as domestic demand conditions and the tight monetary policy continue to support disinflation. In addition, policymakers voiced concerns about rising protectionism and uncertainty regarding global economic policies.

The Central Bank of Turkey held its one-week repo auction rate at 24 percent during its June meeting, saying that a tight monetary policy supports the disinflation process. Annual inflation fell to a nine-month low of 18.71 percent in May, easing further from October's 15-year peak of 25.24 percent after a currency crisis plunged the economy into its first recession in a decade.

The Central Bank of Turkey left its one-week repo auction rate unchanged at 24 percent on April 25th 2019, as widely expected. Policymakers said that they will continue to use all available instruments in pursuit of the price stability objective. The Committee noted an improvement in inflation indicators, still factors including higher import and food prices and the elevated course of inflation expectations point to continued risks to price stability. The country's annual inflation rate rose to 19.71 percent in March from a six-month low of 19.67 percent in February, way above the central bank's midpoint target of 5 percent.