Turkey’s Central Bank decided on Thursday to leave interest rates unchanged. The decision comes ahead of Turkey’s elections next month and follows Turkish President Recep Tayyip Erdogan’s fiscal pledge.
The bank’s Monetary Policy Committee said it will keep its policy rate at 8.5%, citing continued inflation and the lasting effects of February’s devastating earthquake.
“The Committee assessed that the current monetary policy stance is adequate to support the necessary recovery in the aftermath of the earthquake by maintaining price stability and financial stability,” read a statement.
Why it matters: Inflation in Turkey has been on the rise for more than a year, though it may be easing somewhat. The most recent data indicates that annual inflation was 50.51% in March, down from 55.2% in February.