Turkish central bank keeps rates unchanged at 37%

The Central Bank of the Republic of Turkey (TCMB) decided on Wednesday to keep its policy rate stable at 37%, with the overnight lending rate and the overnight borrowing rate at 40% and 35.5%, respectively, AzerNEWS reports.

The bank noted a slight increase in the underlying inflation trend in April due to uncertainties resulting from the geopolitical situation in the Middle East and the rise and uncertainty of energy prices.

The TCMB said it will closely monitor the effect of the recent developments on the inflation outlook, as well as the possibility of second-round effects. It reiterated that it will determine the policy rate "in a way to ensure the tightness required by the projected disinflation path in line with the interim targets" and make decisions on a meeting-by-meeting basis, noting that it will tighten rates "in case of a significant and persistent deterioration in the inflation outlook."