Turkish Central Bank keeps interest rates unchanged

By Yunus Girgin

ANKARA (AA) - The Turkish Central Bank on Thursday kept the policy rate stable in line with market expectations.

The bank's policy rate -- also known as the one-week repo rate -- stands at 17%, the bank said in a statement, noting that additional monetary tightening would be delivered if needed.

"The decelerating impact of the strong monetary tightening on credit and domestic demand is expected to become more significant, hence the effects of demand and cost factors on inflation are envisaged to wane gradually," the bank said.

The balance between the monetary policy rate and actual/expected inflation will be sustained decisively until permanent price stability and 5% target are reached, it added.

A total of 21 economists surveyed by Anadolu Agency last Friday forecast no change in interest rates except for six economists expecting a rise ranging between 0.75 percentage points and 1.00 percentage points in one-week repo rate.

In January, the bank also kept its benchmark interest rate constant at 17%.