The Central Bank of Turkey is moving towards a more rigid monetary policy

The Turkish central bank kept the key interest rate unchanged, on Wednesday, as expected.
The central bank said it would tighten monetary policy more if necessary, easing investors’ fears that the bank would ease monetary policy after inflation fell from a 15-year high.
The central bank kept its repo rate for a week at 24 percent, after raising 11.25 percentage points last year.
In a Reuters poll of 17 economists, all said they expected the rate to remain unchanged.
“The committee has decided to maintain tight monetary policy so that the outlook for inflation will improve significantly … if necessary, there will be more emphasis in monetary policy,” the bank said in a statement.
The Turkish lira briefly rose to 5.3655 lira to the dollar after the decision, from 5.3795 before him. The price of the Turkish currency was 5.38 lira to the dollar.
Inflation fell below 20% in February, from a 15-year high of 25.24% recorded in October. The last time the bank raised the repurchase price in September was to support the crumbling Turkish currency.
The Turkish lira lost about 30 percent of its value against the dollar last year, on concerns linked to a diplomatic dispute with the United States and the independence of the central bank, under pressure from Turkish President Recep Tayyip Erdogan to cut lending costs to boost growth.

Source: News Agencies