The Turkish Central Bank has kept its policy rate unchanged at 37 percent, as the markets expected, extending its monetary policy pause for a fourth consecutive meeting.
The bank’s Monetary Policy Committee said on Thursday the underlying trend of inflation decreased slightly in June, while recent data confirmed an ongoing weakening in domestic demand.
In June, Türkiye’s annual consumer inflation eased to 32.11 percent, slightly below market expectations, as monthly price increases remained limited amid slower energy-linked pressure. The consumer price index (CPI) rose 0.99 percent every month.
The bank said it is closely monitoring the effects of geopolitical developments on inflation through higher costs, economic activity and expectations.
The committee maintained the overnight lending rate at 40 percent and the overnight borrowing rate at 35.5 percent.
The bank said its tight monetary policy stance would be maintained until price stability is achieved, supporting the disinflation process through demand, exchange-rate and expectation channels.
