As expected, the Turkish central bank kept the benchmark interest rate unchanged at 50%, and the Turkish lira had little reaction to this. The central bank said it will maintain a tight monetary policy stance until the underlying monthly inflation trend shows a significant and continuous decline and inflation expectations converge to the forecast range. “If inflation is expected to deteriorate significantly and continuously, monetary policy tools will be effectively used,” the central bank said. USD/TRY remained at the level of 34.1630 lira, which was little changed from the level before the interest rate decision was announced.

As expected, the Turkish central bank kept the benchmark interest rate unchanged at 50%, and the Turkish lira had little reaction to this. The central bank said it will maintain a tight monetary policy stance until the underlying monthly inflation trend shows a significant and continuous decline and inflation expectations converge to the forecast range. “If inflation is expected to deteriorate significantly and continuously, monetary policy tools will be effectively used,” the central bank said. USD/TRY remained at the level of 34.1630 lira, which was little changed from the level before the interest rate decision was announced.