Turkiye’s central bank’s monetary policy committee recently kept its policy rate unchanged at 37 per cent, continuing its monetary policy pause for a fourth meeting in a row.
The committee maintained the overnight lending rate at 40 per cent and the overnight borrowing rate at 35.5 per cent.
Leading indicators suggest the underlying inflation trend will temporarily rise in July, the bank said.
Inflation decreased slightly in June, while recent data confirmed an ongoing weakening in domestic demand, it noted.
Leading indicators suggest the underlying inflation trend will temporarily rise in July, the bank said, adding that energy prices have resumed an upward trend because of growing uncertainty surrounding geopolitical developments.
The committee is closely monitoring the effects of geopolitical developments on inflation through higher costs, economic activity and expectations.
The bank said in a release that its tight monetary policy stance would be maintained until price stability is achieved, supporting the disinflation process through demand, exchange-rate and expectation channels.
It had reduced its policy rate by 100 basis points from 38 per cent to 37 per cent in January this year. The January reduction followed cumulative cuts of 800 basis points during the second half of 2025, which brought the policy rate down from 46 per cent to 38 per cent by December.
Fibre2Fashion News Desk (DS)
