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Central Banks

Turkey Refrains From Rate Cut as Lira Keeps Markets on Edge

  • Central bank holds benchmark at 8.5% after February’s decrease
  • Guidance from last month signaled rate was at ‘adequate’ level
Updated on

Turkey’s central bank held off from cutting interest rates on Thursday as the lira comes under pressure and the economy absorbs the fallout of last month’s catastrophic earthquakes.

The Monetary Policy Committee led by Governor Sahap Kavcioglu left the one-week repo rate at 8.5%. The decision was in line with its guidance that the benchmark was at an “adequate” level following a half-a-percentage point decrease in February, a view the central bank reiterated in its statement on Thursday.