Turkey Shifts Focus to Liquidity Glut After Holding Rates
- Central bank keeps key rate at 50%, in line with all forecasts
- Rate hikes remain option if inflation deviates from projection
Fatih Karahan
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Turkey’s central bank kept interest rates unchanged on Thursday and introduced new measures to tackle excess liquidity and curb lending in foreign currencies.
The Monetary Policy Committee led by Governor Fatih Karahan left the benchmark at 50% for a second consecutive month, in line with all forecasts. The MPC maintained its hawkish bias, repeating that its policy will remain tight “until a significant and sustained decline in the underlying trend of monthly inflation,” according to a statement.