Turkish Central Bank Holds Policy Rate Steady at 37.0% Amid Inflation Risks

• Turkish central bank maintained policy rate at 37.0%.
• Decision was widely expected by markets.
• Cited inflation risks from rising oil prices and geopolitical uncertainty.

The Central Bank of the Republic of Turkey (CBRT) kept its key interest rates unchanged on Thursday, maintaining the policy rate (1-week repo rate) at 37.0%. This decision was largely anticipated by market participants. The central bank also held the overnight lending rate at 40.0% and the overnight borrowing rate at 35.5%. Policymakers indicated continued caution regarding the inflation outlook, specifically highlighting potential risks stemming from rising crude oil prices and heightened geopolitical uncertainty. This stance comes despite recent data showing a slowdown in annual inflation [STORY_ID: a706d4a6-6f19-4807-8729-78b74266e00d].