The Central Bank of Turkey decides to fix the rate of interest

The central bank on Wednesday kept its key policy rate unchanged, easing investors' fears of easing monetary policy after the fall in inflation.

The bank maintained the repo rate for one week at 24% after raising interest rates by 11.25 percentage points last year.

The bank said in a statement that it will closely monitor the factors affecting inflation and that monetary policy will be tightened further if necessary ".

The central bank's decision is in line with economists' expectations and a Reuters poll found that 19 out of 21 economists were expecting the interest rate to remain unchanged.

After the central decision, the Turkish currency reached 5.3825 lira for one dollar, against 5.4169 lira.

The inflation rate was slightly above 20% in December, after reaching 25.24% in October, its highest level in 15 years.

The lira lost 28% of its value against the dollar last year due to concern over a diplomatic dispute with the United States and the independence of the central bank, at the same time. Light pressure exerted by President Recep Tayyip Erdogan to reduce borrowing costs in order to stimulate growth.

Source: Reuters