The Central Bank of Turkey kept interest rates unchanged for the fourth consecutive time on Thursday, in line with market expectations, as the Middle East war and rising energy prices threaten the fragile process of disinflation. This decision comes as Brent crude oil prices broke through $98 per barrel at the beginning of the month due to escalating conflicts in the Middle East. For Turkey, a major energy importer, these price fluctuations have brought inflationary pressures. Turkey's inflatio

The Central Bank of Turkey on Thursday kept interest rates unchanged for the fourth consecutive time, in line with market expectations. The ongoing war in the Middle East and rising energy prices are threatening the fragile process of inflation easing. This decision comes as Brent crude prices surged above $98 per barrel earlier this month due to escalating conflicts in the Middle East. For Turkey, a major energy importer, these price fluctuations have caused inflationary pressures. Turkey's inflation rate in June dropped by about 0.5 percentage points to 32.1%, marking the first slowdown since the conflict began. Prior to the US-Iran conflict, the Central Bank of Turkey had gradually ended one of the most aggressive tightening cycles among emerging markets, but the war has put accommodative policies on hold.