Turkish Central Bank keeps policy rate constant at 50%

Says underlying trend of inflation posted decline in October

By Gokhan Ergocun

ISTANBUL (AA) - The Central Bank of the Republic of Türkiye (CBRT) on Thursday kept its policy rate at 50%, the eighth consecutive decision to keep the rate unchanged.

The bank after a monetary policy committee meeting said the underlying trend of inflation in the country saw a decline in October, and indicators for the last quarter suggest "domestic demand continues to slow down, reaching disinflationary levels."

While core goods inflation remains low, signs for an improvement in services inflation have become more apparent, it said, adding that inflation of unprocessed food remains elevated due to temporary supply conditions.

"While inflation expectations and pricing behavior tend to improve, they continue to pose risks to the disinflation process," the bank said.

Türkiye's annual consumer inflation rate eased to 48.58% in October, the lowest rate since July 2023.

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