UPDATE 2-Turkish central bank leaves rates unchanged

(Adds analysts' comments, details, background)

By Daren Butler

ISTANBUL, March 19 (Reuters) - The Turkish Central Bank on Wednesday left key interest rates unchanged, in line with analysts' expectations, and said global economic uncertainties increased the need to be cautious in monetary policy.

Analysts said after the announcement that they expected rates to remain on hold in the short term after six consecutive months of rate cuts.

The bank said after the monthly meeting of its Monetary Policy Committee that the overnight borrowing rate remained at 15.25 percent and the lending rate at 19.25 percent.

The bank had been expected to leave rates on hold because of deepening woes in global financial markets and rising domestic political risks as a result of a prosecutor's bid to close the ruling AK Party.

"Although it is not indicated in the short statement of the Bank we think that rising political risk factors also had an impact on the Bank's decision. We think that the Central Bank did the right move and it will not cut the rates in the short-term," said Ozgur Altug, economist at Raymond James.

The bank said in the statement that rising food and energy prices and global uncertainty could delay reaching the inflation target, which has been set at 4 percent for this year.

"The global economic uncertainties and the risks related to pricing behaviour have increased the need to be cautious in monetary policy," the bank said.