Turkey Leaves Key Interest Rates Unchanged
The Turkish Central Bank Thursday left its key overnight borrowing rate at 6.5%its overnight lending rate at 9%, in line with general market expectations.
The bank also left the interest rate at 7% for its daily one-week repurchase agreement auctions.
The bank said interest rates may require to be held at current levels for a whilemay be kept at low levels for a long time.
Recent economic data showed that improvement in economic activity continues, the bank's monetary policy committee said in a statement.
It will take time for capacity use to reach pre-crisis levels as the gradual increase in domestic demand has come amid signs of a partial deceleration in overseas demand. Additionally, the jobless rate remains high, the bank added.
Core inflation indicators continue to stay in line with medium-term targets, the bank said. The bank also stated that the outlook for inflation has improved due to the fall in un-processed food priceslower commodity prices.
The benchmark borrowing rate was cut 13 consecutive times to 6.5% from 16.75% between October 2008November 2009.
(SB-SB-ENG)