Turkey leaves interest rates unchanged, nods to lira weakness

Central bank left rates steady at its latest but signalled it is moving closer to a rate cut expected later this year.

Turkey’s central bank has held its key interest rate at 19 percent as expected and has suggested it is inching closer to a cut expected later this year, even while it nodded to renewed pressure on the Turkish lira. The bank said on Thursday the recent import-price pressure plays a role in posing risks to inflation expectations, and it repeated a pledge to keep rates above inflation, which is expected to remain about 17 percent for much of the year. The central bank last changed its one-week policy rate in March when former Governor Naci Agbal raised it to head off rising prices. A poll by Reuters news agency shows analysts expect easing to begin in the fourth quarter when inflation is predicted to decline.