It also increased the overnight lending rate from 46 per cent to 49 per cent and the overnight borrowing rate from 41 per cent to 44.5 per cent.
Turkiye’s central bank has raised the one-week repo auction rate from 42.5 per cent to 46 per cent, the overnight lending rate from 46 per cent to 49 per cent and the overnight borrowing rate from 41 per cent to 44.5 per cent.
Leading indicators point to a level of domestic demand above projections despite some loss of momentum in the first quarter, suggesting a lower disinflationary impact.
The underlying trend of inflation declined in March. Monthly core goods inflation is expected to rise slightly in April due to recent developments in financial markets.
Leading indicators point to a level of domestic demand above projections despite some loss of momentum in the first quarter, suggesting a lower disinflationary impact, the central bank said in a release.
Inflation expectations and pricing behaviour continue to pose risks to the disinflation process.
The decisiveness regarding tight monetary stance is strengthening the disinflation process through moderation in domestic demand, real appreciation in Turkish lira and improvement in inflation expectations. Increased coordination of fiscal policy will also contribute significantly to this process in future, the central bank observed.
The tight monetary stance will be maintained until price stability is achieved via a sustained decline in inflation, it added.
Fibre2Fashion News Desk (DS)