Central Banks

Turkey Hints Rate Cut Is Closer After Sixth Straight Hold

  • Central bank drops explicit reference to tightening option
  • Inflation well above target has made policymakers cautious

Fatih Karahan

Photographer: David Lombeida/Bloomberg
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Turkey’s central bank indicated it’s in no hurry to start cutting interest rates after leaving borrowing costs on hold for a sixth straight month, though suggested such a move is getting closer after dropping a reference to potential tightening.

The Monetary Policy Committee, led by Governor Fatih Karahan, kept the one-week repo rate at 50% on Thursday, a decision that was in line with the forecasts of all economists surveyed by Bloomberg.