Ramazan Eles 
The Turkish Central Bank (CBRT) has kept its benchmark interest rate unchanged at 50% in its June meeting, in line with market expectations. This decision marks the third consecutive month that the CBRT has held its policy rate steady.
The CBRT last raised its policy rate in March, by 50 basis points, to 50%. This was a surprise move, as markets had expected the bank to keep rates on hold. The rate hike was part of a tightening cycle that began in June of last year, following the country’s general elections.
Inflation in Turkey remains high, reaching 75.45% as of May, the highest level since the end of 2022. The CBRT expects inflation to start to decline in June and reach 38% by the end of the year. The bank’s inflation forecast for 2025 is 14%.
CBRT Governor Sahap Kavcioglu said last week that he expects headline inflation to decline every month for the rest of the year. He also said that the bank is closely monitoring inflation developments and expectations to ensure that they converge with the bank’s forecast path.