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Turkey's central bank to maintain tight policy as keeps rates steady
September 14, 2017 / 11:10 AM / 3 months ago

Turkey's central bank to maintain tight policy as keeps rates steady

ISTANBUL, Sept 14 (Reuters) - Turkey’s central bank said on Thursday it will keep monetary policy tight until the inflation outlook displays a significant improvement, after it kept rates steady for the third straight meeting.

Current elevated levels of inflation and developments in core inflation indicators pose risks to pricing behaviour and the bank would deliver further monetary tightening if needed, it said in a statement.

It kept all four of its policy rates on hold, as expected.

Annual inflation last month rose back up into double digits, underscoring the difficulty the bank faces in balancing its fight to keep price pressures under control against demands for cheap credit from President Tayyip Erdogan.

The bank has used unorthodox moves to tighten policy, heightening the perception it wants to avoid conventional rate hikes in the face of Erdogan’s often stated opposition to high interest rates. (Reporting by Daren Butler; Writing by David Dolan; editing by John Stonestreet)

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