Turkey's Central Bank keeps interest rates unchanged in line with market expectations

The Turkish Central Bank on Thursday kept its one-week repo rate-also known as the policy rate-unchanged at 14%, in line with market expectations.

In an Anadolu Agency survey last week, a panel of 18 economists expected no change in the policy rate.

In a statement, the Central Bank pointed to the upward trend in inflation driven by high energy costs, rise in commodity prices, supply constraints, and demand developments.

"The (Monetary Policy) Committee expects disinflation process to start on the back of measures taken and decisively pursued for sustainable price and financial stability along with the decline in inflation owing to the base effect and the resolution of the ongoing regional conflict," the statement said.

Turkey's annual consumer inflation hit a new record high at 54.4% in February, according to Turkstat.

The Central Bank also kept the interest rates constant in its previous two meetings this year after cutting it by 100 basis points from 15% to 14% in December 2021.