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Turkish Central Bank Kept Tighter Monetary Policy Despite Higher Top Rate


мая, 08 2018
watermark Economic news

The central bank of Turkey intends to maintain their current monetary policy until inflation in line with the target following an increase of the top rates by 75 basis points, according to statements said on Wednesday.

High inflation rates and expectations on this will bring risks to the pricing movement. The bank also noted that they could tighten their rates if necessary.

Other three rate hikes have to be put on hold by the central bank.

President Tayyip Erdogan instigated snap elections on June 24 amid the war in Syria and economic challenges posed in the present time that requires a quick change to the power of presidency that would commence after the vote.

The bank chose the route on the unconventional way in tightening the monetary policy that further supports the premise of avoiding rate hikes with Erdogan’s leadership to reiterate the opposition of high borrowing costs.


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