Turkey Central Bank Keeps Major Rates unaffected
The overnight borrowing rate was kept at 7.50 percent and the lending rate at 11.25 percent. Earlier, the one-week repo was cut in July and the overnight lending rate was reduced in August.
William Jackson, a senior rising markets economist at Capital Economics observed that inflation is expected to remain inflexibly high over the coming months despite subordinate oil prices and the recent account gap is set to stay at around 5 percent of GDP even after a rejection in energy import bill.
Meanwhile, the economist expects the one-week repo rate and the overnight lending rate to stay at their present levels all over the next year despite high force from the government to lower rates.
If anything, though, interest rate hikes look more likely than rate cuts, the economist noted.