September 24 (SeeNews) - Turkey's central bank said on Thursday it has decided to increase its one-week repo rate to 10.25% from 8.25% over higher than expected inflation rate.
The central bank's monetary policy committee concluded that the tightening steps taken since August should be reinforced to contain inflation expectations and risks to the inflation outlook as inflation followed a higher-than-envisaged path as a result of fast economic recovery with strong credit momentum, and financial market developments, the central bank said in a statement.
The central bank added that the recent upturn in imports and the easing of travel restrictions are expected to moderate with the phasing out of the policy measures that were introduced to contain the negative effects of the pandemic.
Furthermore, the recovery in exports of goods, relatively low levels of commodity prices and the level of the real exchange rate will support the current account balance in the coming period, the central bank said.
Turkey's central bank last changed its policy rate in May when it cut it to 8.25% from 8.75%.