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ISTANBUL (Reuters) - 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 rates unchanged.
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 Dolan