Central Bank of Turkey announces its September interest rate decision keeping it at 50 percent

The Central Bank of Turkey (CBRT) announced its September interest rate decision. During today’s meeting, the bank kept the policy rate unchanged at 50%.

The Monetary Policy Committee (MPC) of the Central Bank of Turkey (CBRT) revealed its decision, maintaining the policy interest rate at 50%. This decision aligned with market expectations that the rate would remain steady.

Since the general elections last year, the CBRT has raised the policy rate by a total of 4,150 basis points, with the most recent hike occurring in March, as part of a tightening policy supported by the president since June.

This marks the sixth time the CBRT has held the policy rate at 50%, in line with forecasts. While the central bank has moved away from its emphasis on “additional tightening,” it stated that “if a significant and lasting deterioration in inflation is anticipated, monetary policy tools will be used effectively.”

However, unlike the previous decision statement, the September announcement did not include the phrase “if a significant and lasting deterioration in inflation is anticipated, the monetary policy stance will be tightened.”