The Central Bank (Central Bank) of Turkey decided to maintain a key interest rate at the level set in November at nine percent. The regulator reports this in a press release on its website.
In November, the Central Bank last reduced the indicator by 1.5 percentage points, after which in December it was decided to complete the reduction cycle. Then the regulator explained that the current rate is adequate, taking into account growing risks for world demand. At the moment, the task of the Central Bank is to ensure further reduction of loans and parallel increase in demand of the population for national currency.
The Central Bank softened the monetary policy for five months in a row, despite the ongoing acceleration of inflation. According to the results of December, prices in the country reached 64.27 percent in annual terms. However, compared with the previous month, inflation still slowed – the decline was about 20 percentage points. The price of price growth in December was the rise in price of housing and utilities (plus 79.83 percent), soft drinks (77.9 percent) and transport (54.5 percent).