Turkiye Central Bank Keeps Interest Rate at 50 percent

Turkiye Central Bank has kept the interest rate unchanged at 50 percent on repurchase (repo) operations for one week. The Monetary Policy Committee of the Turkiye Central Bank said in a statement that it had decided to keep the interest rate unchanged, and that the tight monetary policy stance would be maintained until a significant and lasting decline in the basic trend of monthly inflation is achieved. It added that although the main trend of monthly inflation in July rose slightly compared to the previous month, it remained below the average of the second quarter, noting that indicators in the third quarter note that domestic demand continues to slow, and that its inflationary impact is decreasing. The committee said that commodity inflation is decreasing, while the improvement in service inflation will be delayed slightly, indicating that the main trend of monthly inflation will decline with the continuation of the tight monetary policy stance. It noted that the bank would maintain a tight monetary po licy stance until achieving a significant and lasting decline in the underlying trend in monthly inflation and convergence in expectations, stressing that it will firmly use all available tools to achieve the main goal of price stability. Source: Qatar News Agency