Tue, 05 Dec 2023

ANKARA, May 25 (Xinhua) -- Türkiye's central bank decided to keep its interest rate unchanged at 8.5 percent on Thursday before the upcoming runoff presidential elections on May 28th.

The bank said in a statement that it had decided to keep the policy rate unchanged in order to "preserve the growth momentum in industrial production and the positive trend in employment after the earthquake."

It added that the current monetary policy stance was "adequate to support the necessary recovery in the aftermath of the earthquake by maintaining price stability and financial stability."

The bank's decision is likely to disappoint many economists, who had expected it to raise rates in order to combat inflation.

However, the decision is in line with President Recep Tayyip Erdogan's economic policies, which have been characterized by low-interest rates and a focus on economic growth.

In February, the bank delivered an interest rate cut from 9 percent to 8.5 percent despite high inflation and the Feb. 6 massive quake disaster that killed more than 50,000 in the country.

The country will go to polls on Sunday for the second round of presidential elections.

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