Turkish Central Bank’s MPC meets today, rates expected to be kept unchanged.

By bne IntelliNews May 22, 2014

The Central Bank’s Monetary Policy Committee (MPC) will convey on Thursday to review interest rates.

The MPC is expected to keep interest rates unchanged, a Reuters poll of economists showed. All but two economists in predicted that the bank would keep its one-week repo rate unchanged at 10% while one economist forecast a 25 basis points cut and another predicted a 50 basis points cut, Reuters said.

At its last meeting on April 24, the MPC decided to keep rates on hold. The bank left its one-week repo rate unchanged at 10%, overnight lending rate at 12%, and its overnight borrowing rate at 8%. The Committee highlighted the upside risks on the inflation outlook and said that the strong and frontloaded monetary tightening delivered at the January interim meeting had contained the adverse impact of such risks on the medium term inflation expectations.

The Bank’s governor Erdem Basci has repeatedly said that Bank will keep monetary policy tight until there is a significant improvement in the inflation outlook.

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