Turkey's central bank expected to halt rate cuts as geopolitical tensions spike energy costs. The bank will likely hold its one-week repo rate at 37% on Thursday, ending a five-month cutting cycle that began in July. Turkey imports most of its oil and gas, making the country vulnerable to global price shocks. With the Iran war driving crude toward $120 per barrel, inflation pressures have resurfaced despite recent rate reductions. Annual inflation remains elevated at 31%, among the world's highest. The central bank has already tightened conditions by shifting funding to costlier overnight lending rates of 40%, effectively delivering a rate hike without formal announcement. Turkish lenders sold over $12 billion to support the lira after conflict erupted.
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