The Central Bank of the Republic of Turkey (CBRT) left its benchmark interest rate, the one-week repo rate, unchanged at 14.00% on Thursday.

In its policy statement, the CBRT reiterated that it will continue to use all available instruments decisively within the framework of liraization strategy until strong indicators point to a permanent fall in inflation.

Market reaction

The USD/TRY pair showed no immediate reaction to this announcement and was last seen trading flat on the day at 17.35.

Additional takeaways

"Level of capacity utilization and other leading indicators show that robust growth in the beginning of the year continues in the second quarter as well."

"Sustainable components of economic growth increase with tourism-related improvements."

"Risks on current account balance due to energy prices continue."

"Sustainable current account balance is important for price stability."

"Credit growth and allocation of funds for real economic activity purposes are closely monitored."

"Ready to take additional macroprudential policy measures when needed."