The Central Bank of the Republic of Türkiye (CBRT) on Thursday kept the one-week repo rate, also known as the policy rate, constant at 8.5%, in line with the market forecast.
Meanwhile, the bank said that rising global inflation’s impact on both inflation expectations and international financial markets is being closely monitored.
Financial markets are indicating that there may soon be an end to cycles of interest rate hikes by central banks, the statement said.
It said that the Monetary Policy Committee (MPC) believes the current stance is adequate to facilitate the economic recovery following the recent massive earthquake in Türkiye’s south while ensuring price and financial stability.
Türkiye’s lira edged down on Thursday before the rate decision.
The lira traded at 19.4320 against the dollar by 9 a.m. GMT, weakening from Wednesday’s close of 19.4200.
The lira has plummeted to record lows this year as the central bank slashed interest rates, Daily Sabah reports