ISTANBUL, Oct 26 (Reuters) - Turkey’s central bank kept key interest rates steady for the fourth consecutive meeting on Thursday, resisting calls to tighten policy after core inflation spiked to a 13-year high last month.
The bank left its late liquidity window, the highest of several instruments it uses to set policy, at 12.25 percent and the benchmark repo rate at 8 percent.
The overnight lending rate was kept at 9.25 percent and the overnight borrowing rate remained at 7.25 percent. In a Reuters poll, all 15 economists had forecast the bank would leave rates on hold.
While the central bank fights inflation pressures, President Tayyip Erdogan makes frequent calls for cheaper credit to boost the economy. The bank’s resistance to lifting the repo rate has triggered concern among investors over the extent of its independence in the face of criticism from Erdogan. (Writing by Daren Butler; editing by John Stonestreet)