Turkey Holds Rate Again With Lira Feeling Heat Before Runoff

  • Central bank keeps benchmark at 8.5%, in line with forecasts
  • Lira has come under pressure ahead of the May 28 vote

Turkey’s central bank extended its interest-rate pause for a third month as it tries to keep the lira stable just before a presidential runoff in which incumbent Recep Tayyip Erdogan is seeking reelection.

The Monetary Policy Committee led by Governor Sahap Kavcioglu left its one-week repo rate at 8.5% on Thursday, in line with all forecasts. The lira was little changed after the decision.