<h1>Central Bank Holds Policy Rate at 5.5%, Lowers Inflation Forecast to 3.1% Amid Tariff Concerns</h1> The central bank decided to maintain the policy interest rate at 5.5 percent and uphold a neutral monetary stance due to concerns over tariff uncertainties. The Monetary Policy Committee unanimously agreed to keep the short-term lending rate unchanged, retaining the growth projection for the fiscal year at 6.5 percent while lowering the inflation forecast to 3.1 percent from 3.7 percent. Since February, the policy rate was reduced by 100 basis points through successive cuts, responding to easing retail inflation, which has remained below 4 percent since February and reached a six-year low of 2.1 percent in June. Food inflation declined significantly, driven by lower prices across major categories. The committee comprises three central bank officials and three external members. The government mandates the central bank to maintain consumer price index-based retail inflation at 4 percent with a two percent margin on either side.