ISTANBUL, March 16 Turkey's central bank raised
its late liquidity window rate by 75 basis points on Thursday
after a U.S. Federal Reserve hike, but left its main policy rate
on hold as concerns about its independence lingered ahead of a
referendum next month.
The bank raised the late liquidity window rate to 11.75
percent from 11 percent, less than the 100 basis point hike that
had been predicted by 15 of 23 economists polled by Reuters.
However, it left its overnight lending rate at 9.25 percent,
contrary to the expectations of a hike from nearly half the
It also left its benchmark one-week repo rate at 8 percent.
All but one respondent in the poll forecast it would be
President Tayyip Erdogan, who wants cheap credit to boost
growth, has long opposed high interest rates and the central
bank has resorted to unorthodox liquidity moves, heightening the
perception it wants to avoid a conventional rate hike.
Turks will vote on April 16 in a referendum on
constitutional changes sharply boosting the president's powers.
(Reporting by Daren Butler and Humeyra Pamuk; Editing by David
Dolan and Toby Chopra)