Demiralp: Inflation Outlook Blocking Turkey Rate Ease

Turkey's central bank is resuming weekly repo auctions at its 37% policy rate as it believes the worst economic impacts from the Iran War have subsided. This move represents an effort to normalize funding conditions, though inflation concerns continue to constrain the central bank's ability to ease monetary policy. According to economist Selva Demiralp, the inflation outlook remains the primary obstacle to rate reductions.