Central Bank of Türkiye holds key rate steady at 50%

The Central Bank of Türkiye has maintained its key interest rate at 50 per cent for the fourth consecutive meeting.

The rate remains unchanged following the July 23 meeting. The bank has kept this rate steady for four months, with plans to continue doing so until inflation shows a clear decline, Caliber.Az reports citing the Russian media.

The Central Bank of the Republic of Türkiye is primarily responsible for steering the monetary and exchange rate policies in Türkiye.

The Bank’s duties and responsibilities set by the Central Bank Law address the following five areas:

Price stability

The primary objective of the Central Bank is to achieve and maintain price stability. Price stability refers to an inflation rate low enough to be ignored in economic decisions. The Bank determines at its own discretion the monetary policy that it will implement and the instruments that it will use to achieve this objective. This means that the Bank has instrument independence.

Financial stability

Financial stability is a complementary objective for the Central Bank. The Bank is responsible for taking regulatory measures with respect to money and foreign exchange markets to ensure stability in the financial system in Türkiye. 

Exchange rate regime

Another duty of the Bank is to determine the exchange rate regime in Türkiye jointly with the government and to design and implement this regime.

In addition, the Central Bank is responsible for keeping the gold and foreign exchange reserves of Türkiye and managing these reserves for the good of the country.  

The Privilege of Printing and Issuing Banknotes

The Grand National Assembly of Türkiye has indefinitely delegated its authority to print and issue banknotes to the Central Bank.

Payment systems

The Central Bank of the Republic Türkiye is responsible for establishing payment and securities settlement systems to ensure fast and secure transfer and settlement of funds and securities; and for introducing necessary regulations to ensure the uninterrupted operation and oversight of the existing or future systems.