Turkey Central Bank signals it won't soften stance in face of pressure

Turkey’s Central Bank signalled it will not soften monetary policy in the face of perceived political pressure, as investors scan emerging markets for assets to sell in anticipation of higher yields from U.S. assets.

The bank said it would “decisively’’ maintain monetary policy until inflation “becomes consistent with targets", in a strengthening of wording compared with a statement last month. It left the benchmark lending rate unchanged at 12.25 percent.

President Recep Tayyip Erdoğan and other government officials have been calling on banks to reduce interest rates on loans, with Erdoğan saying controversially that high interest rates are a cause of inflation. Analysts have raised concerns about political influence in central bank decision-making.

Read the statement here