STORY: Türkiye's central bank holds policy rate steady at 50 pct for fifth consecutive month
SHOOTING TIME: Aug. 16, 2024/Nov. 30, 2023
DATELINE: Aug. 21, 2024
LENGTH: 00:01:24
LOCATION: Ankara
CATEGORY: ECONOMY

SHOTLIST:
1. various of Turkish Central Bank
2. various of Turkish lira
3. various of people shopping in Türkiye (courtesy of ihlas news agency)
4. various of people at cash points in Türkiye (courtesy of ihlas news agency)
5. various of Turkish lira
6. various of Turkish Central Bank

STORYLINE:

Türkiye's central bank held its policy rate steady at 50 percent on Tuesday, marking the fifth consecutive month of unchanged rates, in line with market expectations.

In a statement, the bank's Monetary Policy Committee noted a slight increase in the underlying trend of monthly inflation in July, though it remained below the second-quarter average.

The statement indicated that indicators for the third quarter point to a continued slowdown in domestic demand, accompanied by a diminishing inflationary impact.

While inflation for goods is easing, improvements in services inflation are expected to lag, the committee added.

The bank highlighted persistent risks from high and sticky services inflation, inflation expectations, and geopolitical factors. It emphasized the growing importance of aligning inflation expectations and pricing behavior with projections to aid the disinflation process.

"The commitment to a tight monetary stance will help reduce the underlying trend of monthly inflation through moderated domestic demand, real appreciation of the Turkish lira, and improved inflation expectations," the bank said.

Despite considering the delayed effects of monetary tightening, the committee opted to keep the policy rate unchanged, reiterating its vigilance regarding inflation risks.

The tight monetary stance will remain in place until a significant and sustained decline in the underlying trend of monthly inflation is observed, and inflation expectations align with the projected forecast range.

In March, the central bank raised its policy rate from 45 percent to 50 percent to combat rising prices and has maintained this level since.

Consumer prices increased by 61.8 percent year-on-year in July, down from 71.6 percent in June, according to the Turkish Statistical Institute.

Xinhua News Agency correspondents reporting from Ankara.
(XHTV)