ANKARA, July 23 (Xinhua) -- Türkiye's central bank kept its key policy rate unchanged at 37 percent on Thursday, marking the fourth consecutive month of holding rates steady amid renewed tensions between the United States and Iran in the Middle East.
"As a result of the growing uncertainty amid geopolitical developments, energy prices started trending up again," the central bank's Monetary Policy Committee said in a statement after its rate-setting meeting.
The bank also left its overnight lending and borrowing rates unchanged at 40 percent and 35.5 percent, respectively.
Annual inflation in Türkiye eased slightly to 32.11 percent in June, down from 32.61 percent in May, following several months of increase mainly due to geopolitical uncertainty and oil price increases.
The central bank paused its rate-cutting cycle in March, warning that market turbulence linked to the Iran war could affect inflation.
In May, policymakers sharply raised inflation forecasts, lifting the 2026 projection to 24 percent from 16 percent, reflecting growing strains on the government's economic stabilization program. ■
