Turkey Central Bank Holds Key Rate At 37%

(RTTNews) - Turkey central bank left its interest rates unchanged, as widely expected, after slashing rates by 100 basis points in January.

The Monetary Policy Committee of the Central Bank of the Republic of Turkey decided to hold the policy rate at 37.0 percent.

The committee retained the central bank overnight lending rate and the overnight borrowing rate at 40.0 percent and 35.5 percent, respectively.

Previously, the bank had reduced the benchmark rates by 100 basis points in January.

Policymakers observed that due to heightened uncertainty amid geopolitical developments, global risk appetite deteriorated and energy prices increased.

In order to contain the risks to inflation outlook, decisions supporting tight monetary policy have been enacted alongside coordinated fiscal measures, the committee said.

"In case of a significant and persistent deterioration in the inflation outlook, which can also be driven by the recent developments, monetary policy stance will be tightened," the MPC added.