The Turkish Central Bank kept interest rates unchanged at 50 percent on repo operations for a week on Tuesday.
This came in a statement issued by the bank following a meeting held by the Monetary Policy Committee of the Turkish Central Bank, headed by its Governor Yaşar Fatih Karahan.
The statement explained that although the main trend of monthly inflation rose slightly in July compared to the previous month, it remained below the average of the second quarter.
It added that indicators in the third quarter indicate that domestic demand continues to slow and its inflationary impact is decreasing.
It stated that inflation in goods is decreasing while the improvement in inflation in services will be delayed slightly, indicating that the main trend of monthly inflation will decline with the continuation of the tight stance in monetary policy.
The statement confirmed that the committee decided to keep the interest rate unchanged at 50 percent, taking into account the delayed effects of monetary tightening.
The Turkish Central Bank will maintain its tight monetary policy stance until a significant and sustained decline in the underlying trend of monthly inflation and convergence in expectations is achieved, the statement stressed.
The statement stressed that the committee will use all available tools decisively to achieve the main goal of price stability. The Central Bank had fixed the interest rate at 50 percent during its meeting on July 25.
