The Turkish Central Bank kept interest rates unchanged at 50% in November, marking the ninth consecutive month of stability.
This decision is consistent with market expectations, as analysts expected no change in the price amid the ongoing economic conditions.
After the Monetary Policy Committee meeting, the Central Bank of Turkey published its decisions on its official website.
According to the central bank’s decision, indicators for the fourth quarter point to a slowdown in domestic demand, in line with inflation reduction targets, while inflation in basic goods and services shows a downward trend.
The central bank cited an increase in food inflation due to temporary supply conditions, which it described as “continuing to impose risks on the disinflation process.”
The decision stressed that the interest rate is set to ensure sufficient monetary tightening to curb inflation: “The Committee stressed that it remains highly attentive to inflation risks and that monetary policy tools will be used effectively in the event that a significant and sustained deterioration in inflation is expected.”
The bank added: “Decision regarding the tight monetary stance would reduce the underlying trend of monthly inflation through moderation in domestic demand, the real appreciation of the Turkish lira, and improved inflation expectations.”
