Turkey Holds Rates on Weaker Lira as Political Pressure Wanes
- Decision comes after politicians toned down calls for cuts
- Central bank says weakening lira limits inflation improvement
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Turkey’s central bank held all of its three main interest rates, citing the impact of a weaker currency on inflation. Government officials had issued a caution over the plunge in the lira before the decision.
The bank maintained its overnight lending, one-week repurchase, and borrowing rates at 8.25 percent, 7.5 percent and 7.25 percent respectively, it said in a statement. Economists surveyed by Bloomberg forecast a 25 basis point cut to the highest measure, with the middle and lower rates unchanged.