Turkish central bank keeps one-week repo auction rate at record high level

In its October 2024 meeting, the Central Bank of Turkey maintained its benchmark one-week repo auction rate at 50%, marking the seventh consecutive decision to keep the rate unchanged.

Turkish central bank keeps one-week repo auction rate at record high level

This level represents the highest benchmark borrowing costs since 2002 and aligns with market expectations.

The Monetary Policy Committee highlighted that underlying inflation in Turkey has shown an upward trend towards the end of the third quarter. This increase in inflation is primarily driven by rising services prices, which have offset the relatively muted growth in core prices.

Uncertainty on inflation

As a result, the central bank faces increased uncertainty regarding the outlook for inflation, raising concerns that improvements may not materialize in the near future as previously anticipated .