ECONOMY

Turkey’s central bank keeps all key interest rates unchanged

TURKEY’S CENTRAL BANK KEEPS ALL KEY INTEREST RATES UNCHANGED

The Central Bank of the Republic of Turkey (CBRT) announced Thursday that it had left all key interest rates unchanged, in line with the expectations from markets.

A statement released after the Monetary Policy Committee (PPK) said that the benchmark one-week repo rate, overnight lending rate (upper corridor of the interest rate) and borrowing rate (lower corridor of the interest rate) were kept at 8 percent, 9.25 percent and 7.25 percent, respectively.

from 8.5 percent, while keeping the borrowing interest rate stable at 7.25 percent.

The late liquidity window interest rates between 4 p.m. to 5 p.m. also remained stable at 12.25 percent.

The statement underlined the latest data points to strengthening in industrial activities, recovery in domestic demand and positive effects of European Union members' increasing demand on Turkish exports.

The bank said that economic activity is expected to further accelerate due to the supportive measures and incentives provided recently by the Turkish government.

"The Committee assesses that the implementation of the structural reforms would contribute to the potential growth significantly," it said.

"Although recent improvements in cost factors and expected partial correction in food prices will contribute to disinflation, current elevated levels of inflation pose risks on the pricing behavior. Accordingly, the Committee decided to maintain the tight stance of monetary policy," the statement read.

The bank said its future monetary policy decisions would depend on the inflation outlook.

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