Turkey: CBRT Leaves Policy Rate Unchanged at 19%

Turkey’s annual inflation jumped to a two-year high of 17.53% in June, beating expectations of 17% and extending a long rise after a brief decline, potentially delaying any interest rate cut this year.
The monthly consumer price reading was also higher than expected, up 1.94 percent, according to the Turkish Statistical Institute, compared to expectations in a Reuters poll of 1.50 percent.

The lira was little changed, and recorded 8.6975 against the dollar, compared to Friday’s close at 8.7.

Analysts say rising inflation eases investors’ concerns about a near-term interest rate cut.

Inflation fell unexpectedly in May to 16.59 percent when price hikes were delayed due to COVID-19-related closures. Otherwise, it has been bullish since last September even though the monetary tightening cycle started that month