The weakening effects of geopolitical risks on global economic activity continue to increase, it said in a release.

The monetary policy committee (MPC) of Turkiye’s central bank recently decided to reduce the policy rate (one-week repo auction rate) from 10.5 per cent to 9 per cent. Though strong growth was witnessed in the first half this year, leading indicators for the second half continue pointing to a slowdown in growth due to weakening foreign demand, the bank said.

Pressures on the manufacturing industry due to foreign demand and their currently limited impact on domestic demand and supply capacity have been more pronounced.

The committee expects disinflation process to start on the back of measures taken and decisively implemented for strengthening sustainable price and financial stability along with the resolution of the ongoing regional conflict.

The comprehensive set of policies to be implemented will be published in the 2023 Monetary and Exchange Rate document in December.

Fibre2Fashion News Desk (DS)