(MENAFN) Türkiye's Central Bank announced on Thursday that it would hold the benchmark one-week repo rate steady at 50 percent for the third consecutive meeting, aligning with market expectations. The decision was made after considering the delayed effects of previous monetary tightening measures. In their statement, the bank's Monetary Policy Committee emphasized their continued vigilance regarding inflation risks despite keeping the policy rate unchanged.

The statement highlighted that the underlying trend of monthly inflation experienced a temporary halt in its decline during May. Notably, Türkiye's annual inflation rate surged to 75.45 percent in May, marking the highest level since November 2022, as per the latest data from the Turkish Statistical Institute. This sharp rise in inflation underscores the ongoing economic challenges faced by the country.

The Central Bank also pointed out the deceleration in domestic demand, attributing it to several persistent inflationary pressures. These include the high and sticky nature of services inflation, heightened inflation expectations, geopolitical risks, and fluctuating food prices. The Monetary Policy Committee is closely monitoring the alignment of inflation expectations and pricing behaviors with their projections, indicating a comprehensive approach to managing inflation.

In a related update, the Central Bank announced changes to the dates of the next two monetary policy meetings, rescheduling them to July 23 and August 20, due to adjustments in the governor's schedule. Meanwhile, Turkish officials have suggested that a downward trend in inflation might commence around June, offering a glimmer of hope for easing inflationary pressures in the near future.

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