Economics
Turkey Hardens Tone on Rate Hold, Reducing Chance of Cut in 2024
- The MPC left its main interest rate at 50% for seventh month
- Central bank cites uncertainty over improvement on inflation
The Bosphorus strait, Istanbul.
Photographer: Nicole Tung/BloombergThis article is for subscribers only.
Turkey’s central bank extended its interest-rate pause for a seventh month and adopted a more hard-line stance on the course of inflation, pushing back expectations for a rate cut into next year.
The Monetary Policy Committee under Governor Fatih Karahan kept the one-week repo rate at 50%, in line with almost all forecasts in a Bloomberg survey. The policymakers had appeared to soften their position last month, prompting analysts to believe a rate cut could be imminent, but Thursday’s statement reversed the course.