Turkey June CPI Hits 32.11% as CBRT Holds 50% Rates Higher for Longer
Updated
Updated · vtmarkets.com · Jul 4
Turkey June CPI Hits 32.11% as CBRT Holds 50% Rates Higher for Longer
3 articles · Updated · vtmarkets.com · Jul 4
Summary
Turkey’s annual CPI rose 32.11% in June, a touch above the 32.1% forecast and keeping inflation firmly above 30%.
That slight overshoot reinforces expectations the central bank will keep its 50% policy rate unchanged, effectively ruling out a near-term cut.
The higher-for-longer outlook supports the lira through carry demand and reduces expectations of a sharp USD/TRY depreciation.
Turkish equities face pressure from elevated borrowing costs and attractive bond yields, while short-end rates are expected to stay high as markets price out 2026 cuts.
June inflation still eased from 32.6% in May, extending the broader disinflation trend after energy-price pressures linked to the Iran conflict receded.