As political and market pressure eases on Turkey, the country’s central bank kept interest rates steady Thursday, even as investor doubts persist that the government will manage to orchestrate a soft landing for an economy that was among the fastest-growing in the world last year.
Turkey’s central bank kept its main policy rate at 24%, as market pressure to raise interest rates has eased somewhat recently. In its meeting last month, policy makers lifted its main rate by 625 basis points in a bid to tame inflation that hit 25% in September, to reach a 15-year high.
In a statement, the central bank said it could further restrict monetary policy if inflation doesn’t come down.
The lira USDTRY, -1.3313% was up over 1% against the dollar on Thursday, extending its recent rally. The lira is now up 7.4% against the dollar this month, recouping some of its losses from earlier in the year. It is now down around 33% against the dollar this year.
A full version of this story can be found on WSJ.com
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