Turkish Central Bank says interest rates unchanged

Monetary policymakers are likely to keep the rate at historically low level for a long period of time.

Turkish Central Bank says interest rates unchanged

Turkish Central Bank left its benchmark interest rate unchanged, overnight borrowing rate at 6.50 percent and lending rate at 9 percent. Monetary policymakers are likely to keep the rate at historically low level for a long period of time.

Turkish Central Bank continued to cut overnight interest rates during the whole year in 2009. However, the last time the bank lowered interest rates quarter base points --to 6.5 percent in overnight borrowing and to 9 percent in lending rates-- was November 2009. Since then it has kept rates unchanged.

Following the Monetary Policy Committee meeting on Thursday, the bank said that recent figures suggested an ongoing moderate recovery in economic activity.

"Domestic demand displays a gradual growth trend while there are still uncertainties regarding the external demand, suggesting that it will take a while before the capacity utilization rates return to pre-crisis levels," the bank said in a statement.

The bank also said it expects inflation would drop to single-digit levels in March but hover above the target for some time, and then it would see a downward trend as of the last quarter of the year to go back to target in early-2011.

"Core inflation indicators would also increase in March and April due to base effects created by last year's tax cuts, yet remain below the target," it said.

"The Committee has reemphasized that it would be necessary to keep policy rates at low levels for a long period of time," it added.

AA

Güncelleme Tarihi: 19 Mart 2010, 10:54

SeydiAli

YORUM EKLE