Turkey Central Bank Leaves Key Rate Unchanged

(RTTNews) - Turkey central bank left its key interest rate unchanged for the eighth consecutive meeting on Thursday.

The Monetary Policy Committee of the Central Bank of the Republic of Turkey governed by Fatih Karahan decided to maintain the one-week repo auction rate at 50.00 percent.

The interest rate has been at the current level since March. "The tight monetary stance will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is observed, and inflation expectations converge to the projected forecast range," the bank said in a statement.

The level of the policy rate will be determined in a way to ensure the tightness required by the projected disinflation path, taking into account both realized and expected inflation, the bank added.

In October, inflation eased to a 15-month low but remained at an elevated level. Inflation came in at 48.58 percent, down from 49.38 percent in September.

Capital Economics' economist Nicholas Farr said today's statement did offer some hints that an easing cycle may be getting a bit closer.

The disinflation process will slow over the coming months and interest rates won't arrive until the end of the first quarter at the earliest, the economist said.