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ACTIVITIES
İŞBANK
ANNUAL REPORT 2014
17
CBRTmaintains a macro-prudential
stance onmonetary policy.
At the beginning of 2014, both the
volatilities in the global markets and
domestic uncertainties led to a significant
depreciation in the Turkish Lira. In order
to eliminate price stability concerns,
CBRT made a significant change in its
policy mix and identified one-week repo
auction interest rate as the main funding
instrument once again. In addition, CBRT
opted for a strong monetary tightening by
raising one-week repo rate to 10% from
4.5% in January 2014. CBRT maintained
a cautious monetary policy stance in
the first five months of the year. In line
with the improvement in risk perception
towards Turkey, CBRT reduced the policy
interest rate by 175 basis points to 8.25%
in the May-July period. CBRT did not make
any changes in the policy interest rate in
the rest of the year. However, to ensure
balanced growth and to strengthen
domestic savings, with an announcement
made in October, CBRT restarted paying
interest on TL reserve requirements of
financial institutions.
(*)
Currency Basket (0.5*
€
+0.5*USD) is calculated using monthly average currency rates of CBRT.
Inflation and FC Basket
(*)
(Annual Change)(%)
PPI
CPI
FC Basket
(right axis)
01/13
01/14
02/13
02/14
03/13
03/14
04/13
04/14
05/13
05/14
06/13
06/14
07/13
07/14
08/13
08/14
09/13
09/14
10/13
10/14
11/13
11/14
12/13
12/14
14
30
12
25
10
20
8
15
6
10
4
5
2
0
0
-5