Türkiye’s Central Bank Maintains Benchmark Policy Rate at 46 Percent

(MENAFN) The Central Bank of Türkiye decided to keep its benchmark policy rate steady at 46 percent on Thursday, aligning with analysts' predictions.

Following a Monetary Policy Committee (MPC) session, the bank also preserved the overnight lending rate at 49 percent and the overnight borrowing rate at 44.5 percent.

According to the bank’s announcement, the core inflation trend eased in May, and early indicators imply this downward momentum might extend into June. Yet, the committee expressed concerns about ongoing risks to disinflation, particularly those linked to inflation expectations and pricing conduct.

"The potential effects of geopolitical developments and rising protectionism in global trade on the disinflation process are closely monitored," the bank stated.

In April, after a brief period of easing that started in December, the central bank reversed course by increasing its main one-week repo rate from 42.5 percent to 46 percent.

Meanwhile, Türkiye’s yearly inflation rate dropped to 35.41 percent in May from 37.86 percent in April, reaching its lowest point since November 2021.

MENAFN19062025000045017169ID1109696366