2024-07-24 10:52:08
Turkey’s central bank kept interest rates unchanged at 50 percent on Tuesday, as expected, and reiterated that it remained closely focused on inflation risks, even as it forecast inflation to ease further after a welcome turnaround last month.
The central bank had previously raised interest rates by 500 basis points in March, but has kept them unchanged since then while pledging to tighten monetary policy further if it expects inflation expectations to worsen, a cautious pledge it repeated on Tuesday.
Since June last year, the bank has raised interest rates by a total of 4,150 basis points in a tightening cycle that reversed years of monetary stimulus championed by President Recep Tayyip Erdogan to boost economic growth.
Sky News reported that inflation fell to 71.6 percent in June. Officials and analysts expect a gradual decline in the remainder of 2024, with economists expecting inflation to reach 43 percent by the end of the year.
The lira was little changed, trading at 32.9450 against the dollar after the interest rate decision.
Last updated: July 24, 2024 – 01:00
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2024-07-24 10:52:08