The Central Bank of Turkey decides to fix the interest rate


The Central Bank of Turkey decides to fix the interest rate







Reuters






The Central Bank of Turkey decides to fix the interest rate



The central bank kept its main interest rate unchanged on Wednesday, easing investors' fears that monetary policy could ease after inflation fell on the back of the lira.

The bank kept the repo rate for a week at 24 percent after raising interest rates by 11.25 percentage points last year.

The bank said in a statement it would closely monitor the factors affecting inflation "and monetary policy will be tightened more if necessary."

The central bank's decision is in line with economists' expectations, and a Reuters poll showed that 19 out of 21 economists expected the interest rate to remain unchanged.

After the central decision, the Turkish currency rose to 5.3825 lira to the dollar, from 5.4169 pounds before it.

The inflation rate was slightly higher than 20 percent in December, after hitting 25.24 percent in October, the highest level in 15 years.

The lira lost 28 percent of its value against the dollar last year on concerns over a diplomatic dispute with the United States and the independence of the central bank in light of pressure by President Recep Tayyip Erdogan to cut borrowing costs to boost growth.

Source: Reuters

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