File - A money changer counts Turkish lira bills at a currency exchange office in Istanbul January 24, 2014. (REUTERS/Murad Sezer)
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Turkey's central bank kept its main interest rates on hold Thursday, brushing off political pressure for cuts and saying it would keep monetary policy tight until the inflation outlook improved significantly.The bank kept its overnight lending rate at 12 percent, its one-week repo rate at 10 percent, and its overnight borrowing rate at 8 percent, as predicted by all but one economist in a Reuters poll.Analysts still expect rates to change in the months ahead, and the bank did cut its late liquidity lending rate to 13.5 percent from 15 percent, saying a recent decline in uncertainties and a slight improvement in risk premium indicators reduced the need for any more tightening in liquidity.Business leaders and economists expect inflation to stand at 8.12 percent at the end of the year, well above the bank's 6.6 percent forecast and its 5 percent medium-term target, the central bank's monthly survey released on April 18 showed.
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