Ankara: The Turkish Central Bank has announced its decision to maintain the benchmark policy rate, aligning with predictions made by financial analysts and industry experts. According to Anadolu Agency, the one-week repo rate remains at 46%, a figure unchanged following the Central Bank's recent deliberations. The bank highlighted that the underlying trend of inflation saw a reduction in May, with early indicators suggesting a continuation of this trend into June. The institution noted a deceleration in domestic demand during the second quarter, which has played a role in its decision to keep the rates steady. The Turkish Central Bank is closely observing the potential impacts of geopolitical developments and the rising protectionism in global trade, especially concerning their effects on the country's disinflation process. Despite these challenges, the bank remains committed to its tight monetary stance, which it believes is crucial for sustaining the disinflation trajectory through a combination of modera ted domestic demand, appreciation of the Turkish lira, and improved inflation expectations. The bank emphasized that the policy rate will be set to ensure the necessary tightness to support the projected disinflation path, taking into account both realized and anticipated inflation trends. Turkey's annual inflation rate decreased for the 12th straight month in May, reaching 35.41%, the lowest since December 2021. From May 2023 until March this year, the bank had raised the rate from 8.5% to 50% before stabilizing it until December, when it reduced the rate by 250 basis points to 47.5%. Subsequently, the bank lowered the benchmark rate to 42.5% over three meetings, before unexpectedly raising it by 350 basis points to 46% in April.