Central Bank of Türkiye holds interest rate steady at 50% for seventh consecutive meeting

By Gokhan Ergocun

ISTANBUL (AA) - The Central Bank of the Republic of Türkiye (CBRT) announced Thursday that it will maintain its policy interest rate at 50%, marking the seventh consecutive decision to keep the rate unchanged.

In its statement, the CBRT noted that while core goods inflation remains low, the underlying inflation trend has slightly increased. The bank said it anticipates that inflation in services will improve during the last quarter of the year.

The central bank also highlighted recent data pointing to a slowdown in domestic demand, which suggests a gradual movement toward disinflation.

However, the CBRT expressed caution, citing increased uncertainty regarding the pace at which inflation might improve.

Risks from inflation expectations and pricing behaviors, the bank warned, could hinder progress in achieving disinflationary targets.

The bank's monetary policy committee reiterated its concerns over inflation expectations and pricing behaviors as ongoing risks to the disinflation process. Consequently, the decision to maintain the policy rate reflects the bank's heightened vigilance over inflation risks.

"The tight monetary stance will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is observed, and inflation expectations converge to the projected forecast range," the bank stated.