The Monetary Policy Committee, chaired by Central Bank Governor Şahap Kavcıoğlu, released a statement after its meeting.

The bank made no changes to its benchmark policy rate keeping it at 14%, according to the statement.

“The new variants and increasing geopolitical risks keep the downside risks to global economic activity alive and increases the uncertainty. Recovery in global demand, high course of commodity prices, supply constraints in some sectors and rise in transportation costs have led to producer and consumer price increases internationally,” the bank said.

“While the effects of high global inflation on inflation expectations and international financial markets are closely monitored, central banks in advanced economies assess that the rise in inflation on the back of rising energy prices and imbalances between supply and demand may last longer than previously anticipated,” the bank added. (ILKHA)