Economics
Pandemic Inflation Upswing Pins Turkish Rate in Place for Longer
- Turkey’s central bank leaves key rate on hold for second month
- Price outlook, risks around lira may get in the way of easing
Central Bank Governor Murat Uysal
Photographer: Evrim Aydin/Anadolu Agency via Getty Images
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Turkey extended its pause on interest rates on Thursday as the central bank waits out an upswing in inflation while the economy bounces back after the coronavirus pandemic.
The Monetary Policy Committee left its key rate at 8.25% for a second month, in line with the first unanimous Bloomberg survey of economists since Governor Murat Uysal took over a year ago. The MPC pointed to disruptions caused by the outbreak and said price growth may exceed its projections, which it’s scheduled to update next week.