Turkey Plans Draining Excess Lira Liquidity With Rates on Hold

  • Analysts unanimously predicted one-week repo would stay at 50%
  • Policymakers are waiting for inflation expectations to improve
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Turkey’s central bank said it’s focusing attention on a build-up of lira liquidity as it extended its interest-rate pause into a fourth month.

The Monetary Policy Committee, led by Governor Fatih Karahan, left the one-week repo rate at 50% on Tuesday, in line with the forecasts of all analysts surveyed by Bloomberg.