ISTANBUL, Oct 25 (Reuters) - Turkey’s central bank left its benchmark interest rate unchanged on Thursday as expected, after a mammoth 6.25 percentage point increase that has helped the lira recoup some of its losses this year.
The one-week repo rate now stands at 24 percent after the bank increased it by a total of 11.25 percentage points this year. Twelve out of 15 economists in a Reuters poll had predicted it would leave the rate unchanged.
The currency has recouped some losses in recent weeks although it is still down by more than a third against the dollar this year. The sell-off sent inflation soaring to nearly 25 percent and, analysts say, has raised the likelihood of a recession and a spike in bad debts at banks. (Reporting by Ezgi Erkoyun; Writing by Ali Kucukgocmen; Editing by David Dolan)