The Turkish Central Bank held interest rates at 6.5 Percent at its meeting this week and said rates are likely to stay at low levels for some time.
Despite inflation in March reaching 10.2 Percent in April (9.6 percent in March) the Central Bank kept interest rates on hold at 6.5 Percent.
This is now the sixth consecutive month that interest rates have been at this rate.
The bank reiterated previous guidance that rates are likely to remain “at present levels for a while longer and stay at low levels for a long time.”
Retail savers can expect banks to offer interest rates of around 8.5 Percent or 7.2 Percent after tax. But with inflation at 10.2 Percent returns on cash are now negative in real terms.