Photo taken on May 23, 2024 shows Türkiye's central bank in Ankara, Türkiye. Türkiye's central bank announced on Thursday that it would keep its interest rate unchanged at 50 percent, which is in line with market expectations. (Mustafa Kaya/Handout via Xinhua)
ANKARA, May 23 (Xinhua) -- Türkiye's central bank announced on Thursday that it would keep its interest rate unchanged at 50 percent, which is in line with market expectations.
"Considering the lagged effects of the monetary tightening, the committee decided to keep the policy rate unchanged but reiterated that it remains highly attentive to inflation risks," the bank said in a statement.
The bank said that the underlying trend of monthly inflation registered a limited decline in April, while the recent indicators point to a slowdown in domestic demand compared to the first quarter.
Meanwhile, consumption goods imports increased in April, limiting the improvement in the current account balance.
"In addition to the high level of and the stickiness in services inflation, inflation expectations, geopolitical risks, and food prices keep inflationary pressures alive," added the statement.
The tight monetary stance will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is observed and inflation expectations converge to the projected forecast range, it said.
In March, the central bank increased its policy rate from 45 percent to 50 percent to tackle escalating prices and has maintained it since then.
Türkiye's annual inflation rose to 69.8 percent in April, the highest in one and a half years. According to official forecasts, the rate is expected to peak by mid-year before declining. ■
A person withdraws money from an ATM in Ankara, Türkiye, on May 23, 2024. Türkiye's central bank announced on Thursday that it would keep its interest rate unchanged at 50 percent, which is in line with market expectations. (Mustafa Kaya/Handout via Xinhua)
People shop at a store in Ankara, Türkiye, on May 23, 2024. Türkiye's central bank announced on Thursday that it would keep its interest rate unchanged at 50 percent, which is in line with market expectations. (Mustafa Kaya/Handout via Xinhua)
