Turkey’s Central Bank keeps interest rates at 50% as inflation cools
The bank signaled it was ready for further hikes in case of significant deterioration in the inflation outlook.
ANKARA — Turkey’s Central Bank kept interest rates steady on Tuesday after the country’s year-on-year inflation slowed to a nine-month low of 61% in July.
The Monetary Policy Committee left the rate at 50%, citing high and persistent service inflation as well as geopolitical developments that keep the inflationary risks in play.
The tight monetary stance “will be maintained until a significant and sustained decline” and until annual inflation expectations align with the “projected forecast range.”
Month-on-month inflation rose to 3.23% in July, data released by the Turkish Statistical Institute showed earlier this month. The Central Bank’s year-end projection stands at 38%, revised from 36% in May.
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