CENTRAL BANK DECEMBER INTEREST DECISION
The Monetary Policy Committee (Board) has decided to keep the one-week repo auction rate, which is the policy rate, at 9 percent.
The pioneering data released point out that the concerns about the recession in the economies of developed countries continue with the effect of ongoing geopolitical risks and interest rate hikes. Although the negative effects of supply constraints in some sectors, especially in basic food, have been reduced thanks to the strategic solution tools developed by Turkey, producer and consumer inflation continues to be high on an international scale. The effects of high global inflation on inflation expectations and international financial markets are closely monitored. Depending on the economic outlook that differs between countries, the divergence in the monetary policy steps and communications of the central banks of developed countries continues to increase. It is observed that efforts to find solutions with new supportive practices and tools developed by central banks for increasing uncertainties in financial markets continue. In addition, financial markets started to reflect on the expectations that the central banks, which increased interest rates against increasing recession risks, would soon end their interest rate hike cycles.