Turkey’s central bank keeps rates on hold in line with Fed

ISTANBUL - Reuters

Turkey’s Central Bank kept its interest rates on hold on Sept. 22, taking its cue from the U.S. Federal Reserve (Fed) which has kept rates steady, and ahead of a Nov.1 parliamentary election.

The bank kept its one-week repo rate at 7.5 percent and the overnight borrowing rate at 7.25 percent.

The overnight lending rate remained at 10.75 percent, and the primary dealers’ overnight borrowing rate at 10.25 percent.

All 16 economists polled by Reuters had expected rates to be left unchanged. 

The Central Bank said it would stick to its cautious monetary policy stance until the outlook for inflation improved significantly, citing volatility in energy and food prices and uncertainty in domestic and global markets.

In a statement after its monetary policy committee meeting the bank said it would implement tighter liquidity policy as long as necessary.