According to a statement issued following the Turkish Central Bank's meeting, it does not exclude raising the key rate again, despite today's decision to keep it at the current level.
Thus, the key rate in Türkiye remains at a record level of 50% for the third time in a row. This is the maximum since 2002.
At the same time, the regulator has warned that the trend towards weakening core inflation observed some time ago has ceased to operate. If the situation gets even worse, the Central Bank may further tighten monetary policy.
Inflation in Türkiye
According to experts from the Central Bank of Türkiye, inflationary pressure is expressed in rising prices for products, services and energy. The Bank also notes the negative role of geopolitical risks.
However, the Turkish Central Bank expects that consumer prices will begin to grow more slowly in July.
In May, consumer price growth exceeded 75% in annual terms. The figure was slightly better in April. It was almost 70%. The target set by the Central Bank is 5%.
