Turkish Central Bank holds interest rate steady
As forecasted, Turkey’s Central Bank policymakers held a key interest rate steady Thursday, saying they would continue working to reel in the nation’s double-digit inflation.
ISTANBUL — Following a pair of interest rate hikes last year, Turkey’s Central Bank policymakers held rates steady Thursday, saying they would keep monetary policy tight for an “extended period” amid ongoing attempts to reel in the nation’s double-digit inflation.
In a statement Thursday, Bank’s Monetary Policy Committee announced it would keep its one-week repo rate at 17%, where it stood after two increases in November and December raised the benchmark rate by 675 basis points.
The committee said it would maintain a tight monetary policy stance “until strong indicators point to a permanent fall in inflation and price stability,” while leaving the door open to “additional monetary tightening” if needed.
Turkey’s lira rose about 1% on the news before settling around 7.37 per US dollar at 7 p.m. Istanbul time. In prior polling, most market analysts said they expected the outcome, and the decision bolsters Central Bank Gov. Naci Agbal’s credentials in overseeing mainstream policies that have gained favor with international investors.
