Arab Today, arab today turkey holds rates steady despite government pressure
Last Updated : GMT 07:00:44
Arab Today, arab today
Arab Today, arab today

Turkey holds rates steady despite government pressure

Arab Today, arab today

Arab Today, arab today Turkey holds rates steady despite government pressure

Ankara - AFP

Turkey's central bank refused to bow to  government pressure and kept its key interest rates unchanged on Thursday. In a statement on its website, the bank said the overnight lending rate was being held at 12.0 percent, while the borrowing and one-week repo rates were left at 8.0 percent and 10.0 percent. The announcement came after the bank's monetary policy committee meeting, which agreed that the tight monetary policy would be maintained until an improvement in the inflation outlook was secured. Prime Minister Recep Tayyip Erdogan said early this month after his Islamic-rooted party scored a sweeping victory in March 30 local polls that the bank should cut interest rates in order to stimulate the economy. Erdogan, a strong candidate for the presidency in August, has made a turnaround in Turkey's economic fortunes a keystone of his 11-year rule, pushing the central bank, which is officially independent, for lower rates to boost credit for consumers and businesses. The bank aggressively raised key rates in January in a bid to halt a steep drop in the Turkish lira. The January hike came amid an escalating crisis for Erdogan sparked by a vast corruption investigation implicating himself and his inner circle, months after mass anti-government protests. "The central bank should hold an extraordinary meeting to cut (rates) ... just as they met previously to raise them," Erdogan said on April 4. "Investors in Turkey will be eager once interest rates are lowered. More investments will be made," he added. - Bank decision 'no surprise' - The Turkish lira rallied to 2.1302 against the US dollar, and 2.9461 against euro after the bank rate decision. Analyst William Jackson at the London-based Capital Economics said the decision should ease concerns that it might "bow to government pressure to loosen monetary policy" following Erdogan's comments. Jackson suggested that the central bank had withstood government pressure but only "for now". "It is perhaps reassuring that the CBRT (central bank) didn't take further steps to ease policy today," he said. "But given the pressure from the government to lower rates, there still seems to be a fairly high chance that the CBRT could do so over the coming months. In this event, the lira would become more vulnerable to a fresh sell-off". Ali Cakiroglu, senior investment strategist at HSBC in Turkey, said the bank decision was "no surprise". He said the bank did not give any hints about  future interest rates but he predicted they would remain at current levels "by June at least until the inflation reached its peak". Turkey's economy grew by 4.0 percent last year, down from nearly 9.0 percent in 2010, and analysts warn of a slowdown after months of turmoil and ahead of presidential elections in August. Emerging economy currencies including the lira have also taken a beating due in part to the US Federal Reserve's decision to reduce stimulus measures. Ratings agency Fitch this month affirmed Turkey's credit rating at BBB- with a stable outlook but cut its economic growth forecast to 2.5 percent for this year and 3.2 percent for 2015. It also cited political risk in the country despite the ruling party's election triumph.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today turkey holds rates steady despite government pressure Arab Today, arab today turkey holds rates steady despite government pressure

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today turkey holds rates steady despite government pressure Arab Today, arab today turkey holds rates steady despite government pressure

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today unveils Joon - the 'millenials' airline

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iran tests new medium-range missile

GMT 21:24 2017 Saturday ,23 September

Iran tests new medium-range missile
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 08:39 2017 Friday ,22 September

New Hurdles as Republicans Rush

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday