Turkish Central Bank leaves benchmark interest rates on hold

The Central Bank of the Republic of Turkey (CBRT) has leaved its benchmark one-week repo and overnight borrowing rates at 7.50 percent and 7.25 percent respectively. The bank has also kept the marginal funding rate steady at 10.25 percent.

The monetary policy committee of CBRT held its May meeting on Tuesday.

The committee touched the value loss of Turkish lira against dollar and stated that it restricted the recovery of core inflation. Cautious monetary has to be maintained according to the bank, considering the uncertainties in global markets and fluctuations in energy and food prices.

CBRT has stated that tight monetary policy and macro-prudential measures have balanced credit growth rate. The bank also expects the structural reform package announced by the government to push growth higher.