The lira weakened after the CBRT decision and stood at 2.9486 at 13:25 GMT, from Monday’s close of 2.9130. REUTERS/Murad Sezer
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Turkey's central bank left interest rates unchanged Tuesday, a surprise move that reignited concern about political threats to its independence and put fresh pressure on the struggling lira currency.However, the bank (CBRT) held fire for the 10th straight month, even though annual inflation spiked to 8.1 percent in November, well above an official 5 percent target. Concerns about political pressure on monetary policy have spurred foreign investors to dump a net $6 billion in local bonds this year after at least three years of inflows.It also held its overnight borrowing rate at 7.25 percent and its overnight lending rate at 10.75 percent.Fourteen of 16 analysts polled had expected the repo rate and overnight borrowing rate to rise, with most tipping half percentage-point moves.
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