The Central Bank Monetary Policy Board convened under the chairmanship of Yaşar Fatih Karahan.
The following statements were included in the announcement:
“The main trend of monthly inflation in March was higher than expected despite the ongoing weakening. While the course of imports of consumer goods and gold contributes to the improvement in the current account balance, other indicators for the near term point to continued resistance in domestic demand. The high course and rigidity of services inflation, inflation expectations, geopolitical risks and food prices keep inflationary pressures alive. The Board closely monitors the compliance of inflation expectations and pricing behavior with forecasts.
Financial conditions have tightened significantly as a result of the steps taken in March. The effects of monetary tightening on loans and domestic demand are closely monitored. Although the Board decided to keep the policy rate constant, taking into account the lagged effects of monetary tightening, it reiterated its cautious stance against upside risks on inflation. "The tight monetary policy stance will be maintained until a significant and permanent decline in the underlying trend of monthly inflation is achieved and inflation expectations converge to the predicted forecast range."
