The Committee also kept other short term rates unchanged, marginal funding rate at 10.75 percent and borrowing rate at 7.25 percent, announced in a statement released by the Central Bank on Feb. 23.
“Energy price developments affect inflation favorably, while other cost factors limit the improvement in the core indicators. Considering the wage developments and the impact of the uncertainty in global markets on inflation expectations and pricing behavior and taking into account the volatility in energy and unprocessed food prices, the Committee stated that the tight liquidity stance will be maintained as long as deemed necessary” said the statement of Central Bank.
“Future monetary policy decisions will be conditional on the inflation outlook. Taking into account inflation expectations, pricing behavior and the course of other factors affecting inflation, the tight monetary policy stance will be maintained” it added.