In an announcement made by the CBRT on interest rates, it was stated that the data for the last period showed that the recovery in economic activity continued.
The statement said the improvement in the sectoral expansion of economic activity continued although investments continued to remain weak and included following evaluations in regards:
"While the positive effect of the developments in competitiveness continues, the weakening in the global growth outlook partially slows foreign demand. While the contribution of net exports to growth declines, the recovery in the economy is expected to continue along with the improvement in the disinflation process and the financial conditions. The current account balance, which has improved significantly in the recent period, is expected to follow a moderate course in the upcoming period with the contribution of the measures taken."
While the current global financial conditions support the demand and risk appetite for the financial assets of developing countries, the effects that protectionism measures and other uncertainties regarding global economic policies can create through capital flows and foreign trade are closely monitored."
The statement also assessed that the current monetary policy stance is in line with the targeted disinflation path.
With the decision taken, the Central Bank has implemented interest rate cuts in the last four meetings. With the dismissal of the Central Bank Governor Murat Çetinkaya and the replacement of Murat Aysal, the Central Bank had cut the policy rate from 24 percent to 19.75 percent in July with a radical decision.
The Board decided to reduce the interest rate to 16.50 percent at the meeting on September 12, and withdrew from 16.50 to 14.00 percent at the meeting on October 24.
