Türkiye’s Central Bank (TCMB) decided on Thursday to maintain interest rates at 45 percent, opting to pause its cycle of tightening monetary policy following eight consecutive months of rate hikes.
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This decision was widely anticipated, as the bank’s leadership had previously indicated their intention to pause the rate increases. Over the course of the past eight months, the country’s policy rates had gradually risen from 8.5 percent to the current level, spanning from June of the previous year to January of this year.
The Monetary Policy Committee meeting on Thursday marked the first under the leadership of the new governor, Fatih Karahan. Karahan assumed the position after his predecessor, Hafize Gaye Erkan, resigned earlier in February.
During Karahan’s inaugural press conference as governor, he stated that the bank’s management had assessed that no further rate hikes were deemed “necessary.” However, he also highlighted that the bank would not hesitate to resume monetary tightening if the inflation outlook of the country deteriorated.
Official data reveals that Turkey’s year-on-year inflation surged to 64.86 percent in January, accompanied by a 6.7 percent increase in monthly consumer prices.
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