ISTANBUL — Turkey's central bank left interest rates on hold on Wednesday, taking advantage of a lull in political pressure for rate cuts ahead of a June 7 election to keep up its fight against rising inflation. President Tayyip Erdogan has issued a barrage of calls for lower rates in the past few months but has halted his criticism in recent weeks after it sparked widespread concern about political meddling in monetary policy. All 19 economists in a Reuters poll had expected the bank to leave rates on hold. "Recently elevated volatility in the exchange rates has limited the improvement in core inflation," the bank said in a statement. "This, combined with the uncertainty in global markets and volatility in energy and food prices, makes it necessary to maintain the cautious stance in monetary policy." The central bank left its one-week repo rate at 7.50 percent and overnight borrowing rate at 7.25 percent. The overnight lending rate stayed at 10.75 percent, and the primary dealers' overnight borrowing rate at 10.25 percent. Garanti Securities chief economist Gizem Oztok Altinsac said there was nothing in the statement to influence markets and that the bank's policy outlook depended in part on the post-election environment. "If we face an unclear environment which causes continued pressure on the lira it will require the central bank to show a tighter stance," Altinsac said. — Reuters
