Turkish central bank keeps interest rate at 50%

The Turkish Central Bank decided on Thursday to keep its policy rate steady at 50 per cent, citing a stable underlying inflation trend in August.

Despite slowing domestic demand and core goods inflation remaining low, the bank warned that inflation expectations and pricing behaviours still pose risks to the disinflation process.

The central bank emphasised its commitment to maintaining a tight monetary stance until a sustained decline in monthly inflation is achieved.

It also indicated readiness to use additional macroprudential measures if needed and will closely monitor inflation trends and liquidity conditions to reach a 5 per cent inflation target in the medium term.