Turkish Central Bank Keeps Benchmark Rates Unchanged

Turkey’s central bank kept its three main interest rates unchanged today, sticking to a commitment made last month by Governor Erdem Basci.

The bank held the benchmark one-week repurchase rate at 4.5 percent, in line with Basci’s Sept. 24 statement that the rate would remain the same unless two-year inflation expectations worsen. The governor also kept the overnight lending and borrowing rates, which mark the upper and lower ends of his so-called interest rate corridor, at 7.75 percent and 3.5 percent respectively. The decisions matched the expectations of all economists surveyed by Bloomberg.

“The Committee will maintain the cautious monetary policy stance and continue implementing additional monetary tightening at the appropriate frequency until the medium term inflation outlook is in line with the medium term targets,” the bank said in a statement.

The inflation rate fell to 7.9 percent last month, the slowest since May.

To contact the reporter on this story: Onur Ant in Ankara at oant@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net

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