UPDATE 2-Turkish c.bank holds rates, says could hike

(Adds analysts' comments, quotes)

By Daren Butler

ISTANBUL, April 17 (Reuters) - The Turkish Central Bank left key interest rates unchanged as expected on Thursday, but it said it may raise rates if necessary amid inflation risks.

Analysts said it was far from clear whether the bank would actually raise rates despite its more hawkish stance. As recently as its March meeting, the bank had flagged possible rate cuts.

The bank said the overnight borrowing rate remained at 15.25 percent and the lending rate stayed at 19.25 percent following its April Monetary Policy Committee meeting.

"The committee will take a stance more sensitive to negative news than to positive news in the period ahead and if necessary will resort to measured interest rate hikes," the bank said.

The bank had been expected to leave rates unchanged because of high March inflation and expectations that lira weakness will exert inflation pressures, with all 12 analysts in a Reuters poll forecasting rates would be kept on hold.

However, economists had said it could be forced to raise rates, reversing an easing cycle, if the lira's decline deepens and puts an inflation target even further out of reach. The lira has fallen about 12 percent this year.

UniCredit MIB economist Simon Quijano-Evans said the bank's statement was more hawkish.