By Xavier Fontdegloria

 

Turkey's central bank left its benchmark interest rate unchanged on Thursday for the third straight month amid renewed calls from President Recep Tayyip Erdogan to cut borrowing costs by July or August.

The central bank kept its key rate at 19%, as it did in April and May's monetary policy committee meetings. The decision to continue with the current tight monetary-policy stance was anticipated, according to a consensus from economists polled by FactSet.

The bank repeated its commitment to keep interest rates above inflation, which in May stood at 16.59% on year compared with a 17.14% increase in April. The bank's goal is to achieve a 5% inflation target in the medium-term.

"Taking into account the high levels of inflation and inflation expectations, the current tight monetary policy stance will be maintained decisively until the significant fall in the April Inflation Report's forecast path is achieved," the central bank said.

 

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

 

(END) Dow Jones Newswires

June 17, 2021 07:24 ET (11:24 GMT)

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