Turkey Tilts Hawkish With Rate Kept at 50% for Another Month
- Central bank extends interest-rate pause in place since April
- Economy shows signs of cooling but demand remains resilient
This article is for subscribers only.
Turkey extended an interest-rate pause in place since April, with the central bank telegraphing a hawkish path as it stays on alert for risks to inflation that just peaked above 75%.
The Monetary Policy Committee led by Governor Fatih Karahan left the one-week repo rate at 50% on Thursday, in line with the forecasts of all economists surveyed by Bloomberg. The MPC repeated that its policy will remain tight “until a significant and sustained decline in the underlying trend of monthly inflation,” according to a statement.