The Turkish Central Bank keeps the interest rate at 50 percent

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The Turkish Central Bank decided on Thursday to keep the interest rate fixed at 50 percent on repurchase operations for a week.

This came in a statement issued by the Central Bank following a meeting held by the Monetary Policy Committee of the Turkish Central Bank, headed by the Bank’s Governor, Yasar Fatih Kara Khan.

The statement explained that as a result of the meeting, it was decided to fix the interest rate at 50 percent.

He added, “Although the Board of Directors decided to keep the interest rate constant, the cautious stance against rising risks to inflation was reiterated.”

The statement stressed that if the bank expects a “significant and permanent deterioration in inflation, the monetary policy stance will be tightened,” noting that it is closely monitoring the effects of monetary tightening on loans and domestic demand.

The central bank raised the interest rate by 500 basis points to 50 percent during its previous meeting on March 21.