Central bank says policy stance adequate to support recovery

Creation of suitable financial conditions will be prioritized

The Turkish Central Bank said on Thursday the current monetary policy stance was adequate to support recovery following last month’s earthquake by maintaining price stability and financial stability.

In the minutes of last week’s policy committee meeting, where the central bank left its key rate unchanged at 8.5%, it said the effect of quake-driven supply-demand imbalances on inflation was being closely monitored.

Domestic consumption demand, the high level of energy prices, and weak economic activity in main trade partners were keeping the risks on the current account balance alive, it added.

It was stated that the creation of suitable financial conditions will be prioritized to minimize the effects of the disaster and support the necessary transformation. The report also said that energy prices increased by 0.64 percent in February.

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