The Central Bank of the Republic of Turkey (CBRT) announced that it kept the policy rate unchanged at 50%, which did not cause any significant movement in the dollar. The CBRT decided to leave the policy rate unchanged at 50% under the current administration, after raising it for a long time. Under the previous administration, interest rates were cut as low as 8.5%, but over the last year and a half the rate has reached 50%.
The CBRT stated that it set the interest rate in a way to bring the underlying trend of inflation down and to achieve the 5% target in the medium term. While the underlying trend of inflation weakened in June, a temporary increase is expected in July. The Committee closely monitors inflation expectations, pricing behavior and geopolitical risks.
