Economics
Turkey Holds Off From Rate Cut Despite Erdogan’s Vow to Ease
- Central bank keeps benchmark at 14% for sixth straight month
- Policy stays ultra-loose despite surging inflation, weak lira
Exchange rate information inside the Grand Bazaar in Istanbul.
Photographer: Moe Zoyari/BloombergThis article is for subscribers only.
Turkey’s central bank opted for a longer policy pause in the face of runaway inflation and a steep depreciation in the lira, even after a blunt message from President Recep Tayyip Erdogan calling for interest-rate cuts to resume.
The Monetary Policy Committee, led by Governor Sahap Kavcioglu, on Thursday kept its benchmark at 14% for a sixth month, in line with the forecasts of most economists surveyed by Bloomberg. The lira initially erased losses after the announcement and traded little changed against the dollar.