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Turkey keeps policy rate on hold, despite weakening lira

MPC trying to keep “balance” between government pressure and market demand, analyst says

Murat Çetinkaya
Governor Murat Çetinkaya: appointed to a five-year term in April 2014
Photo: CBRT

The monetary policy committee (MPC) of the Central Bank of the Republic of Turkey decided to keep its main policy rate on hold today (January 25), despite a falling currency and rising inflation.

The MPC kept Turkey's main monetary policy tool, the one-week repo rate, at 8%. It has raised the rate only once in the last year, hiking it by 50 basis points on November 24.

The MPC also held the borrowing rate at 7.25%. It did raise the marginal funding rate from 8.5% to 9.25%, along with the late

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