The Central Bank of the Republic of Turkey (TCMB) Monetary Policy Committee (PPK) announced the last interest rate decision of the year.
In the announcement made by the TCMB regarding interest rates, it was stated that the Board, convened under the chairmanship of Hafize Gaye Erkan, decided to increase the policy interest rate to 42.50 percent.
The Central Bank, which raised the interest rate for the seventh consecutive meeting, increased the one-week repo auction interest rate, which is the policy rate, by 250 basis points.
Thus, in the period after the election, the interest rate increased by a total of 34 points in all meetings since June.
In the MPK announcement, it was stated that the headline inflation, which recorded a limited increase in November, was consistent with the outlook presented in the last inflation report, and that the current level of domestic demand, rigidity in service prices and geopolitical risks kept inflation pressures alive.
On the other hand, it was stated that near-term indicators indicate that the balancing in domestic demand continues with the reflection of monetary tightening on financial conditions.
MONETARY TIGHTENING RATE SLOWED DOWN
In the announcement, where it was stated that the Board evaluated that a limited improvement had begun in inflation expectations and pricing behavior, the following statements were included:
"The significant improvement in external financing conditions, the ongoing increase in reserves, the support of the balancing of demand to the current account and the strengthening of domestic and foreign demand for Turkish lira assets contribute strongly to exchange rate stability and the effectiveness of monetary policy. In this context, the decline in the main trend of monthly inflation continues."
In the announcement, it was stated that the Board slowed down the pace of monetary tightening, considering that the level of monetary tightness required for the establishment of disinflation was significantly approached.
THERE WILL BE NO CHANGE IN CREDIT CARD INTERESTS
A press release regarding credit card maximum interest rates was published on the TCMB's website.
Accordingly, while the current level of the reference rate was determined as 3.11 as an upper limit, no change was made in the current calculation method for rates below this level.
In this context, there will be no increase in the last announced rates for credit card maximum interest and member merchant maximum commission rates.