world-economy

Turkey Holds Rates Steady Amid Economic Slowdown, Energy Crisis

Turkey's central bank maintained its benchmark interest rate at 37 percent for a third straight decision Thursday. Governor Fatih Karahan's Monetary Policy Committee cited weak economic activity and reduced foreign currency demand. The overnight lending rate remained fixed at 40 percent, continuing to serve as the primary funding mechanism since the Iran conflict erupted. The decision aligns with market expectations, as most economists surveyed anticipated no change. Turkey, a major oil and natural gas importer, has faced a surge in energy costs after the Strait of Hormuz was effectively closed. Policymakers kept borrowing costs elevated to address the challenging economic environment.