Research for the Central Bank’s interest rate decision has gained momentum. The Central Bank announces the interest rate decision after its meetings on certain dates. Global inflation data and Turkey’s and the European Central Bank’s interest rate decision will be among the most important economic topics in the new month. The Monetary Policy Committee meeting under the chairmanship of Central Bank Governor Şahap Kavcıoğlu will announce the decision on interest rates. So when is the Central Bank interest rate meeting? Has the Central Bank’s interest rate decision for 2022 been announced?
WHEN WILL THE DECISION ON THE INTERESTS OF THE CENTRAL BANK BE ANNOUNCED?
The Central Bank’s interest rate decision will be announced on May 26. The decision will be published at 2 p.m. The markets will gain clarity depending on the direction the bank will give the key rate.
WHAT WAS THE LAST DECISION?
The Monetary Policy Committee (Committee) decided to maintain the one-week repo auction rate, which is the policy rate, at 14%.
Persistent geopolitical risks are fueling downside risks to global and regional economic activity and increasing uncertainty. Uncertainties regarding global food security, high commodity prices, growing supply constraints in some sectors, particularly energy, and high transport costs are leading to higher producer and consumption internationally. The effects of high global inflation on inflation expectations and international financial markets are closely monitored. 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 central banks still maintain their favorable monetary positions and continue their monetary policy buying 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 Board decided to strengthen the macroprudential policy system.
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 expects the disinflation process to begin with the restoration of the global environment of peace and the elimination of the base effects of inflation, as well as measures taken to establish lasting price and financial stability. In this context, the Council decided to keep the policy 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 Council will continue to make its decisions in a transparent, predictable and data-driven framework.