In surprise move, Turkey's central bank keeps rates on hold

 20 Oct 2016 - 14:18

In surprise move, Turkey's central bank keeps rates on hold

Reuters

ISTANBUL: Turkey's central bank kept its overnight lending rate on hold on Thursday, in a surprise move after seven straight months of cuts and hours after President Tayyip Erdogan declared himself an "enemy" of interest rates.

The bank kept the overnight lending rate at 8.25 percent.

Fourteen out of 15 economists polled by Reuters had expected the bank to cut rates, with most seeing a 25 basis point cut.

Overnight lending is the highest of the multiple rates the bank uses to set policy. The bank also kept its benchmark one-week repo rate on hold.

Just hours before the announcement, Erdogan called himself an "enemy" of interest rates, describing them as a "means of exploitation".