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Turkey's central bank kept its interest rates unchanged on Thursday, after slashing it for four straight months.
The Monetary Policy Committee of the Central Bank of the Republic of Turkey, governed by Sahap Kavcioglu, decided to hold the one-week repo rate at 14.00 percent.
Under pressure from President Tayyip Erdogan, the bank had lowered the rate by 500 basis points since September.
While cumulative impact of the recent policy decisions is being monitored, to create a foundation for sustainable price stability, the comprehensive review of the policy framework is being conducted with the aim of prioritizing Turkish lira in all policy tools of the CBRT, the bank said.
The MPC said it expects disinflation process to start on the back of measures taken for sustainable price and financial stability along with the decline in inflation owing to the base effect.
Even though inflation is likely to breach 40 percent in the coming months, President Erdogan is unlikely to permit interest rate hikes, Jason Tuvey, an economist at Capital Economics, said.
It is more likely that further easing will be delivered later this year, the economist added.
