Europe

Turkish Central Bank Retains Policy Rate At Record Low

Turkey's central bank on Tuesday decided to maintain its policy interest rate at a record low of 5.75 percent, amid heightened inflationary pressures. The decision was in line with economists' expectations.

The central bank also kept the overnight borrowing rate unchanged at 5 percent, while the lending rate was retained at 12.5 percent.

The last time the central bank lowered the interest rate was in August 2011, when it slashed the benchmark rate by 50 basis points at an emergency meeting, a week after deciding to keep them unchanged.

Turkey's annual inflation accelerated for the fourth consecutive month and hit 10.61 percent in January, owing mainly a sharp increase in unprocessed food prices.

In the third quarter, the economy grew at a faster-than-expected pace of 8.2 percent. The growth rate was, however, lower than 8.8 percent recorded in the second quarter.

by RTT Staff Writer