Price stability, instrument independence and banknotes: the Central Bank of the Republic of Türkiye
Background
The recent cut in the policy rate of Türkiye was decided by the Central Bank of the Republic of Türkiye, and the standing rules of that bank are worth knowing.
The bank gives price stability as its main objective, to be achieved and then maintained.
It defines price stability as an inflation rate low enough to be ignored when economic choices are made.
The bank picks its own monetary policy and its own instruments, a feature it describes as instrument independence.
Authority to print and issue banknotes has been handed to the bank by the Grand National Assembly of Türkiye, with no time limit set on that delegation.
The head office of the bank is in Ankara, which is the capital of Türkiye.
The bank also runs market operations, treasury operations, reserve management and payment systems.