The following meeting of the Monetary Policy Committee of the Central Bank of the Republic of Türkiye (TCBM) was held Thursday, Report informs, citing the bank.
The Monetary Policy Committee has decided to reduce the policy rate (the one-week repo auction rate) from 45 percent to 42.5 percent.
"Following the increase in January, the underlying trend of inflation decreased in February. Over this period, core goods inflation remained relatively low, while services inflation slowed down after the idiosyncratic increase in January," the TCBM said.
"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. Going forward, increased coordination of fiscal policy will also contribute significantly to this process. The tight monetary stance will be maintained until price stability is achieved via a sustained decline in inflation," the bank said.