The Turkish central bank left its key policy rate, the one-week repo auction rate, at 37% on Thursday, keeping it unchanged for the fifth consecutive meeting as it cited that elevated energy prices pose "upward risk to inflation outlook."
The bank also maintained its overnight lending rate at 40% and borrowing rate at 35.5%, according to a statement from the Monetary Policy Committee (MPC).
"Despite monthly fluctuations, recent inflation figures and leading indicators suggest that the underlying trend of inflation is decelerating," the Central Bank of the Republic of Türkiye (CBRT) said.
It went on to say that data on economic activity, as well as the limited pass-through of supply shocks to domestic prices, "confirm the weakness in domestic demand."
However, it warned that "elevated energy prices amid geopolitical developments pose an upward risk to the inflation outlook."
