Turkish rates stable despite high inflation

The Turkish central bank announced on 23 November that it will keep its policy rate unchanged at 17.5% and the lending rate at 22.5% after its penultimate monetary policy committee meeting for 2006.

The board last raised rates in July by 25 basis points. In October, annual inflation fell to 9.98%, but remains well above the central bank's end of year target of 5% and 4% for 2007.

In a cautious statement released after the rate decision, the bank said that inflation expectations had continued to