Turkish Central Bank (CBRT) maintains its Weekly Repo at 14.00% as expected; the comprehensive review of the policy framework is being conducted with the aim of prioritizing Turkish lira in all policy tools of the CBRT
- The CBRT will continue to use decisively all available instruments until strong indicators point to a permanent fall in inflation and the medium-term 5 percent target is achieved in pursuit of the primary objective of price stability.
- The Committee expects disinflation process to start on the back of measures taken for sustainable price and financial stability along with the decline in inflation owing to the base effect.
- Increase in inflation in the recent period has been driven by distorted pricing behavior due to unhealthy price formations in the foreign exchange market, supply side factors such as the rise in global food and agricultural commodity prices, supply constraints, and demand developments.
Via CBRT
Reaction details (11:03)
- The Turkish Lira saw gains as the CBRT put further emphasis on prioritising the TRY in all policy tools, with USD/TRY falling from 13.4000 to 13.3400 shortly after the release.
- USD/TRY extends on downside wit the pair at 13.2700 last.
- 10 minutes after the dust has settled, USD/TRY pared back losses to 13.4000.
20 Jan 2022 - 11:00- Fixed Income- Source: Newswires
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