Turkey's central bank on Tuesday decided to leave its key rates unchanged as widely expected by economists, and pledged to maintain the "cautious monetary policy stance."

The one-week repo rate, the main policy rate, was maintained at 4.5 percent. Today, the overnight lending rate was kept at 7.75 percent and the borrowing rate at 3.5 percent. The overnight lending rate is the upper end of the interest-rate corridor and the borrowing rate is the lower end.

Inflation fell to 8.17 percent in August from a ten-month high. The Monetary Policy Committee expects inflation to fall further.

The bank vowed to maintain the cautious monetary policy stance and implement additional monetary tightening at the appropriate frequency until the medium term inflation outlook is in line with the medium term targets.

Further, it said that increasing the predictability of the Turkish lira liquidity policy is deemed important to contain the repercussions of uncertainties in global monetary policies on the domestic economy.

RTTNews