ISTANBUL Dec 20 Turkey's central bank cautioned
on Tuesday that exchange rate movements due to recently
heightened global uncertainty and the increase in oil prices
posed upside risks on the inflation outlook, as it left interest
The bank said in a statement it would maintain a cautious
monetary policy stance as it left its benchmark repo rate
steady, contrary to expectations of a hike, after repeated calls
from President Tayyip Erdogan for cheaper credit.
Last month the bank hiked the rate for the first time in
nearly three years. The bank also said it expected the recovery
in economic activity to continue at a moderate pace after a
deceleration in the third quarter.
(Reporting by Daren Butler and Ece Toksabay; Editing by David