Turkey’s Central Bank keeps interest rates at 50% as inflation cools

ANKARA — Turkey’s Central Bank kept interest rates steady on Tuesday after the country’s year-on-year inflation slowed to a nine-month low of 61% in July.

The Monetary Policy Committee left the rate at 50%, citing high and persistent service inflation as well as geopolitical developments that keep the inflationary risks in play.

The tight monetary stance “will be maintained until a significant and sustained decline” and until annual inflation expectations align with the “projected forecast range.”

Month-on-month inflation rose to 3.23% in July, data released by the Turkish Statistical Institute showed earlier this month. The Central Bank’s year-end projection stands at 38%, revised from 36% in May.