BAKU, Azerbaijan, March 6. The Central Bank of Türkiye's Monetary Policy Committee has reduced the one-week repo auction rate from 45% to 42.5%, Trend reports.
This decision comes after a decrease in inflation in February, with core goods inflation remaining relatively low and services inflation slowing following a rise in January.
Despite domestic demand surpassing projections in the fourth quarter, it remained at disinflationary levels. Early indicators for the first quarter suggest continued disinflationary trends. While inflation expectations and pricing behaviors are improving, they still pose risks to the disinflation process.
The Committee emphasized its commitment to a tight monetary stance, contributing to the disinflation process by moderating domestic demand and strengthening the Turkish lira. Increased coordination of fiscal policy will also play a key role in these efforts.
The policy rate will continue to be adjusted carefully based on inflation expectations and trends, with the goal of achieving price stability through a sustained decline in inflation. If necessary, additional macroprudential measures will be implemented to support the tight monetary policy stance and preserve financial stability.
Looking ahead, the Committee remains focused on reducing inflation to the medium-term target of 5% and will use all available tools to manage liquidity and ensure the desired monetary and financial conditions.