Prices are displayed in a clothes shop at Eminonu commercial area in Istanbul, Turkey, Wednesday, Feb. 21, 2024. Turkey's central bank left its key interest rate unchanged at 45% on Thursday, pausing a series of aggressive rate hikes aimed at taming high inflation. (AP Photo/Khalil Hamra)
A man pulls a trolley with goods in Eminonu commercial area in Istanbul, Turkey, Wednesday, Feb. 21, 2024. Turkey's central bank left its key interest rate unchanged at 45% on Thursday, pausing a series of aggressive rate hikes aimed at taming high inflation. (AP Photo/Khalil Hamra)
Two women pass a dress displayed for sale in Eminonu commercial area in Istanbul, Turkey, Wednesday, Feb. 21, 2024. Turkey's central bank left its key interest rate unchanged at 45% on Thursday, pausing a series of aggressive rate hikes aimed at taming high inflation. (AP Photo/Khalil Hamra)
A man offers tea for sale in Eminonu commercial area in Istanbul, Turkey, Wednesday, Feb. 21, 2024. Turkey's central bank left its key interest rate unchanged at 45% on Thursday, pausing a series of aggressive rate hikes aimed at taming high inflation. (AP Photo/Khalil Hamra)
People walking are reflected in the glass of a clothing shop in Eminonu commercial area in Istanbul, Turkey, Wednesday, Feb. 21, 2024. Turkey's central bank left its key interest rate unchanged at 45% on Thursday, pausing a series of aggressive rate hikes aimed at taming high inflation. (AP Photo/Khalil Hamra)
A price is displayed in a clothes stand at Eminonu commercial area in Istanbul, Turkey, Wednesday, Feb. 21, 2024. Turkey's central bank left its key interest rate unchanged at 45% on Thursday, pausing a series of aggressive rate hikes aimed at taming high inflation. (AP Photo/Khalil Hamra)
A man carries sacks of goods at Eminonu commercial area in Istanbul, Turkey, Wednesday, Feb. 21, 2024. Turkey's central bank left its key interest rate unchanged at 45% on Thursday, pausing a series of aggressive rate hikes aimed at taming high inflation. (AP Photo/Khalil Hamra)
People warm themselves with a fire while fishing over the Galata bridge in Istanbul, Turkey, Wednesday, Feb. 21, 2024. Turkey's central bank left its key interest rate unchanged at 45% on Thursday, pausing a series of aggressive rate hikes aimed at taming high inflation. (AP Photo/Khalil Hamra)ANKARA, Turkey (AP) — Turkey’s central bank left its key interest rate unchanged at 45% on Thursday, pausing a series of aggressive rate hikes aimed at taming high inflation.
The central bank said it was keeping the benchmark one-week repo rate on hold, according to a statement. It was the bank's first interest rate decision under its newly appointed governor, Fatih Karahan.
The move was in line with expectations that the rate would be kept constant after the bank said last month that monetary tightness needed to “establish the disinflation course” was achieved.
On Thursday, the bank suggested the current rate would be maintained until “there is a significant and sustained decline in the underlying trend of monthly inflation.”
President Recep Tayyip Erdogan appointed Karahan as central bank governor on Feb. 3, replacing Hafize Gaye Erkan who resigned after claims of nepotism emerged in local media. Erkan, a former U.S.-based bank executive and Turkey’s first woman governor, strongly rejected the claims.
Under Erkan's tenure, the central bank had raised the benchmark interest rate from 8.5% in June to 45% last month.
The rate hikes came after Erdogan, who was reelected in May, reversed his unconventional policies that economists say helped trigger a currency crisis and drove up the cost of living, leaving households struggling to afford basic goods.
Despite the series of hikes, inflation remains high — consumer prices rose nearly 65% in January. The Turkish lira, meanwhile, has slumped to a new record low against the dollar this week, going for 31 lira for $1.
Karahan, a former deputy governor under Erkan, has assured that Turkey would maintain policy to fight rampant inflation overseen by Finance Minister Mehmet Simsek.
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
See The Five Stocks Here
Do you expect the global demand for energy to shrink?! If not, it's time to take a look at how energy stocks can play a part in your portfolio.
Get This Free Report
