Turkey's central bank left interest rates steady on Tuesday, with analysts expressing concern that political pressure may prevent the bank from delivering an inflation-fighting rate hike in coming months.
The central bank kept its benchmark one-week repo rate at 7.5 percent for a fourth straight month, in line with expectations.
It comes at an interesting time for the country, with analysts – who think a rate hike is needed to counter rising prices – disagreeing with the government, which has piled on pressure for a rate cut to boost growth. The central bank cut rates earlier this year amid political pressure.
Analysts said they doubted that a weakening in the ruling AKP party's grip on power following elections earlier this month would see the government ease up on its demands for cuts.
In fact, Turkey's Economy Minister Nihat Zeybekci on Monday renewed his call for lower rates.