Istanbul, Oct 21 () - The Monetary Policy Committee has decided to keep the short term interest rates unchanged and as in the past, will stick to the tight monetary policy stance, announced the Central Bank.
The Committee has decided to keep constant the short term interest rates of overnight interest rates at 7.5; marginal funding rate at 10.75 percent; and the borrowing rate at 7.25 percent, the statement said.
While the statement stressed the favorable developments on energy prices have had positive effects over inflation, it urged that exchange rate movements delayed the improvement in the core indicators.
Future monetary policy decisions conditional on inflation outlook
“Considering the impact of the uncertainty in domestic and global markets on inflation expectations and taking into account the volatility in energy and food prices, the Committee decided to maintain the tight liquidity stance as long as deemed necessary” Central Bank declared.
Future monetary policy decisions are expected to be conditional on the inflation outlook, said the statement, taking into account inflation expectations, pricing behavior and the course of other factors affecting inflation, while the tight monetary policy stance will be maintained.