Turkey’s central bank left its policy interest rate unchanged at 10.25% on Thursday, contrary to expectations of a sizeable hike, saying it would continue with liquidity measures after raising rates last month to support the Turkish lira and curb inflation.
In a statement after this year’s 10th Monetary Policy Committee (MPC) meeting, the bank said a “significant tightening in financial conditions has been achieved, following the monetary policy and liquidity management steps taken to contain inflation expectations and risks to the inflation outlook.”
“Accordingly, the (bank) has decided to keep the policy rate unchanged.”
In a Reuters poll of 17 economists, the bank was expected to raise the one-week repo rate by 175 basis points, with predictions ranging between hikes of 100 basis points and 300 basis points.
