Turkey faces political shifts and central bank interest rate stability

In Turkey, political tensions are rising as the CHP and YENİ Parti face potential alliance shifts amid ongoing legal proceedings involving Istanbul Metropolitan Municipality Mayor Ekrem İmamoğlu. Discussions regarding fundamental changes to the Presidential Government System are also surfacing, with critics calling for a reduction in centralized executive powers.

In the economic sector, the Central Bank of the Republic of Türkiye (TCMB) has maintained its policy rate at 37 percent but announced the resumption of weekly repo auctions. While markets anticipate gradual interest rate cuts toward the end of the year, concerns remain regarding persistent inflation and the timing of central bank communications. Internationally, attention is also focused on the Jackson Hole economic symposium.