Türkiye's Central Bank keeps policy rate steady

# 19 January 2023 15:43 (UTC +04:00)

Türkiye's central bank on Thursday held its policy rate at 9% as inflation fell at the year end amid easing commodity prices, APA-Economics reports citing MarketScreener.

The bank left interest rates unchanged for a second consecutive meeting, after cutting them by 500 basis points from August to November even as inflation reached its highest level in 25 years.

Inflation eased significantly in December, falling to a nine-month low of 64.3% from 84.4% in November due to falling commodity prices, the recent stability of the lira and the statistical effect from even higher prices a year ago. Inflation is expected to fall further in the coming months, economists say.

The bank said in a statement that inflation trends have improved, but also noted slowing demand.

"It is critically important that financial conditions remain supportive for the sustainability of structural gains in supply and investment capacity... in a period of increasing uncertainties regarding global growth as well as further escalation of geopolitical risks," it said.