Turkey Holds Steady On Central Bank Policy

The Turkish central bank had a meeting after the May elections and kept the policy rate the same at 8.50%. The market was not surprised by this decision. The bank wants to support the recovery from the earthquakes earlier this year. The market didn't react too much to the decision and the USD/TRY did not change.

The CBT made some changes after the election. They made security requirements stricter for loans. This included commercial and consumer loans. But just a few days later, they changed their mind before the run-off election. Some regulations and controls have still stayed the same. People are paying attention to see if the CBT will make more changes.

The CBT's assessment is almost the same as April's note.

Most people think monetary policy needs to be changed to deal with dwindling reserves. Reserves have fallen by $22.1bn this year. They are now at $105.1bn as of 12 May. The new government might change the economy model after the elections. This will be important for those who follow Turkey's economy.