By Joshua Kirby
The Turkish central bank decided to keep interest rates on hold for the third meeting in a row as price pressures remain high.
The bank's policy committee said Thursday that it was leaving its benchmark one-week repo rate at 50.00%, the level the bank raised it to in March, ending a series of hikes that began a year ago. That marked a divergence from a previous policy of keeping rates low despite soaring inflation in the Anatolian republic. The new course of higher borrowing costs has yet to bring about an easing in price rises, but the central bank remains confident that inflation will begin to fall over the remainder of the year and into 2025.
Domestic demand is slowing, the bank said, adding that it remains alive to risks that could spike a new surge in inflation.
"The tight monetary stance will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is observed," the bank said.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
06-27-24 0724ET
