TURKISH CENTRAL WEEK REPO RATE UNCHANGED AT 50%
ISTANBUL, Sept 19 (Reuters) -Turkey's central bank held its main interest rate steady at 50% for a sixth consecutive month on Thursday as expected, but reiterated that it remained highly attentive to inflation risks.
The last time the bank raised its policy rate TRINT=ECI was in March, when it hiked by 500 basis points to round off an aggressive tightening cycle that started in June last year to tame soaring inflation.
Since then it had kept the one-week repo rate on hold while pledging to tighten further if the outlook worsens. A Reuters poll showed analysts expect the bank to make its first rate cut around November.
All 16 poll respondents in the poll expected the bank to leave the policy rate unchanged this week, with it seen dipping to 47% by year end according to the median estimate.
The poll showed it could move as soon as October or as late as next year and it is seen lowering the rate by more than 20 percentage points by the end of 2025.
Annual inflation dropped below 52% in August from a peak of 75% in May and the government forecasts it will fall below 42% by year end before reaching 17.5% by end-2025.
The central bank has lifted its policy rate by 4,150 basis points since June 2023, reversing years of monetary stimulus backed by President Tayyip Erdogan to boost economic growth.
Reporting by Ezgi Erkoyun, Huseyin Hayatsever and Tuvan Gumrukcu;
Editing by Daren Butler
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