Central Bank of Turkey's Monetary Policy Committee (MPC) has decided to keep the policy rate unchanged at 7.50 percent, as the analysits and economists at the banks and brokerage houses expected.
The Committee also kept other short term rates unchanged, marginal funding rate at 10.75 percent and borrowing rate at 7.25 percent, said in the statement released by the Central Bank on Jan 19.
The Central Bank statement underlined that the demand from the European Union economies continued to support exports, despite elevated geopolitical risks in other export markets.
Energy price developments affected inflation favorably, while other cost factors limit the improvement in the core indicators, it said. "Considering the wage developments and the impact of the uncertainty in global markets on inflation expectations and pricing behavior and taking into account the volatility in energy and unprocessed food prices, the Committee stated that the tight liquidity stance will be maintained as long as deemed necessary" the statement added.
Future monetary policy decisions would be conditional on the inflation outlook, it said, stating that taking into account inflation expectations, pricing behavior and the course of other factors affecting inflation, the tight monetary policy stance would be maintained.