Turkey Central Bank Keeps Rates Unchanged to Fight Inflation

Turkey’s central bank kept both ends of its interest-rate corridor unchanged, declining to loosen policy in response to lower-than-expected inflation, signs of an economic slowdown and plunging bond yields.

The bank in Ankara held its benchmark one-week repo rate at 5.75 percent, in line with the forecasts of all eight economists surveyed by Bloomberg. It also kept the top rate for overnight loans at 11.5 percent, upsetting predictions of a cut by banks including Commerzbank AG and DZ Bank AG.