ISTANBUL, Oct 25 (Reuters) - Turkey’s central bank will tighten monetary policy further if necessary, it said on Thursday, leaving interest rates unchanged as the lira stabilises.
“The tight stance in monetary policy will be maintained decisively until the inflation outlook displays a significant improvement,” the bank said in a statement.
The lira is currently down 34 percent against the dollar this year, having trimmed its losses after the central bank hiked rates by 6.25 percentage points and after diplomatic relations with Washington improved.
The diplomatic spat with the United States and concerns about President Tayyip Erdogan’s influence over monetary policy have driven the lira sell-off. (Reporting by Ezgi Erkoyun; Writing by Ali Kucukgocmen; Editing by Daren Butler)