Turkey’s central bank held its key interest rates steady for the seventh consecutive month on Tuesday.
The Monetary Policy Committee of the Turkish central bank decided to retain the one-week repo rate at 7.5 percent.
The overnight lending rate was maintained at 10.75 percent and the borrowing rate was retained at 7.25 percent. The decision was in line with economists’ expectations.
Considering the impact of the uncertainty in domestic and global markets on inflation expectations and taking into account the volatility in energy and food prices, the Committee decided to maintain the tight liquidity stance as long as deemed necessary, the bank said in a statement.
The bank said future monetary policy decision will be conditional on the improvements in the inflation outlook.
In August, inflation rose to 7.14 percent from 6.81 percent in July. It was the first rise in three months.
External demand remained weak in the first half of the year, while domestic demand contributed to growth moderately. The composition of growth is expected to shift gradually towards net exports with the support of rising demand from the European Union economies, the bank added.
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