ISTANBUL (Reuters) - Turkey’s central bank will keep monetary policy tight until the inflation outlook displays a significant improvement and becomes consistent with its targets, it said on Wednesday, as it raised its top rate by 75 basis points.
Current elevated inflation levels and expectations continue to pose risks on the pricing behavior, and the bank will tighten monetary policy more if needed, it said in a statement.
The central bank left its other three main interest rates on hold.
President Tayyip Erdogan last week called for snap elections on June 24, saying economic challenges and the war in Syria meant Turkey must switch quickly to the powerful executive presidency that goes into effect after the vote.
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 borrowing costs.
Reporting by Ezgi Erkoyun; Editing by David Dolan