The Central Bank has announced its interest rate decision (April 2022 interest rate decision MB)

Central Bank decision on interest ratesannounced it.

As expected, the CBRT Monetary Policy Committee (PPK) kept the policy rate constant at 14%.

In the interest rate announcement made by the CBRT, it was reported that the Monetary Policy Committee, chaired by Central Bank Governor Şahap Kavcıoğlu, decided to keep the policy rate constant at 14%.


The CBRT, which cut the interest rate by 500 basis points in the last 4 meetings of 2021, made no changes in the first three meetings of this year and kept the rate at 14.00%.

At the March meeting, the bank reiterated its disinflation expectations and focus on policies that prioritize the Turkish lira.

In the statement made by the bank, the following statements were made:


“Current geopolitical risks are fueling downside risks to global and regional economic activity and leading to increased uncertainty.

Uncertainties about global food security, high commodity prices, growing supply constraints in some sectors, especially energy, and high transport costs are pushing producer and consumer prices higher at the international scale.

High global inflationIts effects on inflation expectations and international financial markets are being closely watched. However, central banks in developed countries consider that the rise in inflation could take longer than expected due to rising energy prices and the mismatch between supply and demand.

In this context, although there is a divergence in the monetary policy communications of the central banks of the developed countries due to the divergent outlook for economic activity, the labor market and inflation expectations between the countries, the banks centrals still maintain their favorable monetary positions and buy programs by reducing them.

Capacity utilization levels and other leading indicators indicate that domestic economic activity remains strong, although regional differences are emerging, with the gradually increasing positive impact of foreign demand.

While the share of sustainable components in the composition of growth is increasing, energy price risks in the current account balance persist.

It is important for price stability that the current account balance becomes permanent at sustainable levels.


The council considered that the growth rate of loans, including long-term investment loans in Turkish liras, and the adequacy of accessible financing resources with economic activity according to their objective are important for stability. financial.

In this context, the Council strengthen macroprudential policy. has decided.

In the recent rise in inflation; Increases in energy costs caused by geopolitical developments, temporary effects of price formation away from economic fundamentals, strong negative supply shocks caused by increases in world prices for energy, food and agricultural raw materials continued to have an influence.


The Council, as well as the measures taken for the establishment of lasting price stability and financial stability, which are pursued with determination, that the disinflationary process will begin with the restoration of the global environment of peace and the elimination of the base effects of inflation. foresees.

In this context, the Board decided to keep the key rate constant. The cumulative effects of the decisions taken are closely monitored, and a comprehensive process of reviewing the policy framework that encourages a permanent and reinforced reading of all the policy instruments of the CBRT continues during this period in order to institutionalize price stability in a way sustainable.

In line with the main objective of price stability, the CBRT will resolutely continue to use all the tools at its disposal within the framework of the debt consolidation strategy, until the emergence of strong indicators indicating a permanent decline. inflation and the medium-term objective of 5% has been achieved.

The stability to be achieved in the general price level will positively affect macroeconomic stability and financial stability through the fall in country risk premiums, the continuation of the reverse substitution of currencies and the upward trend in foreign exchange reserves, and the fall permanent financing costs.

Thus, a fertile ground will be created for the continued growth of investment, production and employment in a healthy and sustainable manner.

The Board will continue to make its decisions in a transparent, predictable and data-driven framework.”

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