Monetary policy refers to decisions taken to influence the availability and cost of money in order to achieve targets such as economic growth, employment growth and price stability. Central banks are responsible for the implementation of monetary policies. The CBRT Law sets the primary objective of the Central Bank as to achieve and maintain price stability in Turkey.
Hitting the inflation target is a very important factor in terms of monetary policy management. To meet inflation targets, the Central Bank manages aggregate demand and inflation expectations by using policy rates and other monetary policy instruments. The Bank’s inflation forecasts are another important instrument for steering inflation expectations in the inflation targeting regime. Inflation forecasts of the Central Bank are announced through Inflation Reports published in January, April, July, and October.
In Turkey, monetary policy decisions are taken by the Monetary Policy Committee at pre-scheduled meetings.
Monetary Policy Committee decisions are announced on the day of the meeting at 2:00 p.m., and a summary of the meeting including the Committee’s assessments are published within 5 working days.