Turkey maintains policy rate at 50%

The Central Bank of Turkey kept its policy rate at 50 per cent on Tuesday.

July saw a slight rise in monthly inflation, but it remained below the second-quarter average. Domestic demand continues to slow, easing inflation pressures, though services inflation remains high.

The Bank stressed the importance of aligning inflation expectations with projections to support disinflation. The tight monetary stance aims to reduce inflation through moderated demand, a stronger lira, and improved expectations.

The policy rate remains unchanged, but the bank is vigilant about inflation risks and ready to tighten further if needed. Additional macroprudential measures will support the monetary transmission mechanism if unexpected developments occur.

The Bank aims to achieve a 5 per cent inflation target in the medium term, making decisions based on data and transparency.