Turkish central bank keeps policy rate steady at 46 pct

A man walks past a currency exchange office in Ankara, Türkiye, on June 19, 2025. The Central Bank of Türkiye kept its policy rate unchanged at 46 percent on Thursday, in line with market expectations. (Mustafa Kaya/Handout via Xinhua)

ANKARA, June 19 (Xinhua) -- The Central Bank of Türkiye kept its policy rate unchanged at 46 percent on Thursday, in line with market expectations.

In a statement following a meeting of its Monetary Policy Committee (MPC), the bank also maintained the overnight lending rate at 49 percent and the overnight borrowing rate at 44.5 percent.

The bank said the underlying trend of inflation declined in May, with leading indicators suggesting the disinflationary trend could continue into June. However, the committee warned that risks to disinflation remain, particularly stemming from inflation expectations and pricing behavior.

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

In April, the central bank ended a brief easing cycle that began in December and raised its key one-week repo rate from 42.5 percent to 46 percent.

Türkiye's annual inflation slowed to 35.41 percent in May from 37.86 percent in April, marking its lowest level since November 2021. ■

People pass by a currency exchange office in Ankara, Türkiye, on June 19, 2025. The Central Bank of Türkiye kept its policy rate unchanged at 46 percent on Thursday, in line with market expectations. (Mustafa Kaya/Handout via Xinhua)