The Central Bank of Turkey kept the basic interest rate stable at 14% for the fifth consecutive monetary policy meeting on Thursday (26), despite high inflationary pressures in the country.
In a statement, the institution did not name the war in Ukraine, but stressed that “ongoing geopolitical risks” raise economic uncertainties at regional and global levels.
Growing concerns about food security, rising commodity prices and supply bottlenecks have driven global inflation, according to the note.
In Turkey, economic activity remains “strong”, with the help of “robust” external demand, in the BC’s view.
The monetary authority expects the disinflationary process to begin soon, in the wake of measures aimed at price stability, as well as base effects and the “resolution of the ongoing regional conflict”.
The Turkish Central Bank reinforced its commitment to use all available instruments to reach the 5% inflation target in the medium term.
In April, the country’s consumer price index (CPI) rose 69.97% year-on-year, the highest level since February 2002.
Source: CNN Brasil
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