Türkiye leaves interest rates unchanged, in line with expectations

By Tuba Ongun

Türkiye's Central Bank on Tuesday kept the benchmark one-week repo rate constant at 50% for the fifth straight meeting, as widely expected.

Pointing to a slight hike in July inflation, the bank said indicators for the third quarter suggest that domestic demand continues to slow down with a diminishing inflationary impact.

Türkiye's annual consumer inflation significantly cooled to a nine-month low of 61.78% this July.​​​​​​​ On a monthly basis, consumer prices rose 3.23% from July, up from 1.64% in June.

"The decisiveness regarding tight monetary stance will bring down the underlying trend of monthly inflation through moderation in domestic demand, real appreciation in Turkish lira, and improvement in inflation expectations," the bank said in a statement.