Turkey Keeps Interest Rates Unchanged Amid Rising Inflation

The Turkish central bank kept interest rates steady on Thursday for the second time in a row, in an effort to keep them above rising inflation in the country and consolidate the Turkish lira after the recent decline to TRY 8.92 to the dollar.

The bank's monetary policy committee said In a statement released on Thursday that it would keep the benchmark interest rate at 19% and maintain the position until a "significant drop" in inflation.

"The policy rate will continue to be set at a higher level of inflation to maintain a strong anti-inflationary effect until strong indicators point to a lasting decline in inflation and the 5% medium-term target is reached," the committee said.

Turkey's annual inflation rate rose for the seventh month in a row to 17.14% in April, up from 16.19% in March, according to the Turkish Statistical Institute.

Central bank governor Sahap Kavcioglu fulfilled expectations set by most economists, who said the bank had no room for maneuver amid inflationary trends. Kavcioglu predicts that inflation will peak in April and will soon begin to subside, falling to 12.2% by the end of the year.