Turkey Central Bank keeps rate at 37%

The Central Bank of Turkey maintained the interest rate at 37%, continuing its tight monetary policy to combat inflation, which experienced a slight decrease in June. There are expectations of a temporary rise in July due to increased energy prices and deteriorating geopolitical conditions. The bank confirmed that its policy will remain aimed at achieving a medium-term inflation target of 5%, with careful monitoring of inflation forecasts and their impacts on demand and economic activity. It also stated that in the event of a significant deterioration in expectations, the policy will be further tightened.

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