The Central Bank of the Russian Federation kept interest rates at the same level

SAFAKNA TURKEY – The Central Bank of the Republic of Turkey (CBRT) kept the discount rate unchanged at 9 percent.

In the text of the decision of the Central Bank of the Russian Federation, he stated that improvements in the level and trend of inflation began to be observed with the support of a comprehensive policy pursued to strengthen sustainable price stability and financial stability.

While stating that the effects of lower external demand on overall demand and production are being closely monitored, the CBRT says it is critical that financial conditions are favorable in terms of supporting the acceleration of industrial production and employment growth, as well as the sustainability of structural supply growth and investment potential in a period of increasing uncertainty about global growth and geopolitical risks.

“The share of sustainable components in growth has increased”

In the text of the resolution, the CBRT indicated that pressure from external demand is balanced by domestic demand in growth forecasts.

Expressing strong growth in the first three quarters of 2022, the CBR said figures for the last quarter of the year indicated that slower growth due to weakening external demand was offset by relatively strong domestic demand. .

According to the CBRT, the impact of external pressure on the manufacturing industry on domestic demand and supply remains limited so far, while employment growth is more positive than in peer countries.

Pointing out that growth momentum is being supported by structural gains, especially in sectors that boost employment, the CBRT said that the share of sustainable components in growth has increased, and that the strong contribution of tourism to the current account balance, which is better than expected, continues to extend to all months of the year.

“Loan growth rates are closely monitored”

Stressing that domestic consumer demand, high energy prices and the possibility of a recession in key export markets remain current account risks, the CBR emphasized that maintaining a stable current account balance at a sustainable level is important for price stability. .

As stated in the text “Monetary Policy and Liraization of the Central Bank of the Russian Federation 2023”, which states that the rate of growth of loans and the alignment of financial resources with economic activity in accordance with its purpose are carefully monitored, the instruments that will support the effectiveness of the monetary transmission mechanism will be continue to be actively used, and that the entire set of policy instruments, especially funding channels, will be put in place to meet its objectives.