“While level and underlying trend of inflation have been improved with the support of the implemented integrated policy approach, the effect of earthquake driven supply-demand imbalances on inflation is closely monitored. It has become even more important to keep financial conditions supportive to preserve the growth momentum in industrial production and the positive trend in employment after the earthquake. Accordingly, the Committee decided to reduce the policy rate by 50 basis,” the bank said in a statement released following the meeting of the Monetary Policy Committee.

“The Committee assessed that the current monetary policy stance after the measured reduction is adequate to support the necessary recovery in the aftermath of the earthquake by maintaining price stability and financial stability. The effects of the earthquake in the first half of 2023 will be closely monitored,” the statement noted.

Turkish Lira weakens against the U.S. dollar after the bank’s Monetary Policy Committee rate decision.

Last month, the bank decided to keep the policy rate (one-week repo auction rate) constant at 9 percent. (ILKHA)