Turkey Central Bank Keeps Interest Rates Unchanged

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The Central Bank of the Republic of Turkey on Tuesday left its overnight borrowing rate unchanged at 6.50% as expected, while the lending rate was also retained at 9.00%.

In an statement, the central bank reiterated its stance that it would be necessary to keep policy rates at low levels for a long period of time as uncertainties remained regarding the strength of the recovery.

The policy committee also noted that due to the impact of tax adjustments, food price increases and base effects, inflation would continue to rise significantly in February and hover above the target for some time. But the committee was keen to stress that inflationary pressures would decline once these temporary factors wore off.

The bank added that recent data releases indicate a moderate recovery in economic activity is ongoing but uncertainties remained with regards to aggregate demand, while unemployment remained at high levels.

The Central Bank of the Republic of Turkey on Tuesday left its overnight borrowing rate unchanged at 6.50% as expected, while the lending rate was also retained at 9.00%. (Market News Provided by RTTNews)