October 26, 2017 / 11:09 AM / a year ago

Turkey's central bank to maintain tight policy as keeps rates steady

ISTANBUL, Oct 26 (Reuters) - Turkey’s central bank said on Thursday it will keep monetary policy tight until prospects of an easing of inflationary pressures become clear, after it kept rates steady for the fourth straight meeting.

Current elevated levels of inflation and developments in core inflation indicators pose risks to pricing behaviour and the bank would deliver further monetary tightening if needed, it said in a statement.

It kept all four of its policy rates on hold, as expected.

Turkey’s core inflation spiked to a 13-year high last month, prompting President Tayyip Erdogan to blame high interest rates for fuelling price growth, reiterating an unorthodox view that has unnerved investors.

The bank has used unorthodox moves to tighten policy, heightening the perception it wants to avoid conventional rate hikes in the face of Erdogan’s often-stated opposition to high borrowing costs. (Writing by Daren Butler; editing by John Stonestreet)

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