The Turkish central bank decides not to alter the main interest rate.
Turkey's central bank hasn't adjusted its key interest rate in response to rising inflation in the nation. The monetary authorities made this decision on Thursday, maintaining the rate at 50%. This outcome was anticipated by experts. The central bank increased the key monetary policy rate from 45% to its current level in March and held steady in April. Now, they're observing how the previous tightening of their policies is affecting inflation while remaining vigilant for future risks. Additionally, they're prepared to boost interest rates in case of a more pessimistic outlook.
Inflation in Turkey hit nearly 70% in April. Central bank governor Fatih Karahan predicts that it will reach up to 75-76% this month. He thinks that both falling inflation rates and a slowdown in domestic demand are on the horizon after this peak.
Karahan replaced former central bank head Hafize Gaye Erkan, who stepped down in early February. Under Erkan's tenure, interest rates were aggressively raised to tackle inflation. Previously, the central bank had been under pressure from influential head of state Recep Tayyip Erdogan to boost the economy with cheap money.
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Despite the soaring inflation rates in Turkey, reaching almost 75% in May, the Central Bank decided to keep the key interest rate unchanged at 50%. This decision was made in contrast to expectations, as experts had anticipated a potential increase in response to the rising inflation figures.
Source: www.ntv.de
