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Opting for backdoor measures, Turkey’s Central Bank holds interest rate steady

Turkey’s Central Bank left a key interest rate unchanged in favor of liquidity measures Thursday in what analysts described as a “missed opportunity” to send a positive signal to the markets.
Turkish Central Bank Governor Murat Uysal speaks at the "Briefing on 2020-3 Inflation Report" meeting in Ankara, Turkey on July 29, 2020. (Photo by Adem ALTAN / AFP) (Photo by ADEM ALTAN/AFP via Getty Images)

ISTANBUL — Turkey’s Central Bank avoided raising a key interest rate Thursday, opting to impose backdoor liquidity measures to support the nation’s troubled currency.

The bank’s monetary policy committee announced it would hold its one-week repo rate steady at 8.25%, where it has remained since May 21 amid inflationary pressures on the Turkish economy.

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