The Bank of Turkey left the policy rate unchanged at 14% at the Monetary Policy Committee on the 21st. The deferment was as expected by the market for the seventh straight month. Although inflation has skyrocketed to nearly 80%, it has not changed its view that disinflation will begin in the future.
The central bank said in a statement that while tourism is supporting the economy, soaring energy prices and the risk of a recession in trading partners could worsen Turkey's current account balance. He said he was closely monitoring the slowdown in credit growth, while he said that job creation was stronger than in other countries.
Turkey has a very accommodative policy despite rising inflation.
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