Price stability

Inflation is high but is moving in line with the economic program, Treasury and Finance Minister Mehmet Şimşek has said, adding that under the current expectations, the decline in inflation will continue.

The Central Bank of Türkiye has increased the key interest rate for a seventh consecutive month but said it is nearing the end of the monetary tightening cycle.

As widely expected, the bank hiked the policy rate - the one-week repo auction rate - by 250 basis points to 42.5 percent at the Monetary Policy Committee's last meeting of 2023 on Dec. 21.

The Central Bank's Monetary Policy Committee (MPC) is set to convene for the last rate-setting meeting of 2023 on Dec. 21.

The bank is widely expected to increase its main policy rate - the one-week repo auction rate - from the current 40 percent to 42.5 percent.

The contribution of natural gas to monthly inflation is expected to weaken in December, the Central Bank has said.

The underlying trend of inflation has started to decline, and the inflation will decrease in the second half of 2024 after reaching its peak, Central Bank Governor Hafize Gaye Erkan has said.

Annual inflation in Bulgaria slowed down in October to 5.8% from 6.3% a month earlier, according to the data of the National Statistical Institute (NSI). This is the lowest inflation in the country since September 2021.

Since the beginning of the year (October 2023 vs. October 2022), inflation is 4.1 percent.

In line with market expectations, the Central Bank has increased its policy rate, the one-week repo auction rate, by 500 bps from 30 percent to 35 percent.

Since June, the bank has hiked the policy rate by 2,650 bps.

The Central Bank raised its end-2023 inflation forecast to 58 percent from 22.3 percent in its previous report, its governor, Hafize Gaye Erkan, said on July 27, vowing to continue the bank's gradual monetary tightening.

Türkiye's Central Bank has announced a measure aimed at simplifying its micro and macroprudential framework.

In a statement released on June 25, the bank recalled that the Monetary Policy Committee (MPC) said following the rate-setting meeting on June 22 that the existing micro and macroprudential framework would be gradually simplified, guided by impact analyses.

As widely expected, Türkiye's Central Bank has once again kept its policy rate - one-week repo auction rate- constant at 8.5 percent.