The Central Bank of Turkey keeps the one-week policy rate unchanged at 37%

The Central Bank of Turkey has kept its main interest rate unchanged, indicating policymakers are exercising caution as they balance slowing inflation against a sharp rise in crude oil prices. The Monetary Policy Committee, led by Governor Karahan, kept the one-week policy rate at 37% on Thursday, matching the expectations of 19 institutional analysts surveyed. In August, the annual overall price increase slowed unexpectedly to 31.5%, which had previously sparked expectations of a rate cut this month. However, escalating tensions between Iran and the United States over the Strait of Hormuz have made policymakers more cautious, with Brent crude oil surpassing $100 per barrel on Wednesday for the first time since July.