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Turkish Central Bank Maintains Rate

Turkish Central Bank Maintains Rate

The Central Bank of Turkey set the main interest rate at 37%, while keeping the overnight lending rate at 40% and the borrowing rate at 35.5%. It indicated that inflation slightly declined in June but may experience a temporary rise in July due to increasing energy prices and geopolitical uncertainty. The bank reaffirmed that monetary policy will continue to tighten until price stability is achieved, with a focus on inflation expectations and controlling the risks associated with its rise, while continuously monitoring financial market conditions to achieve an average inflation target of 5%.

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