The Turkish Central Bank held interest rates at 6.5 Percent at its meeting on 13 April but it also announced a new benchmark interest rate.

Despite inflation in March reaching 9.6 Percent in March the Central Bank kept interest rates on hold at 6.5 Percent.

This is now the fifth consecutive month that interest rates have been at this rate.

But the bank also announced that it would be changing its overnight borrowing rate to that of its seven day benchmark at some time in the future.

The seven day rate is some half a percent higher than the overnight rate at present.

The aim is to encourage financial institutions to lend to each other rather than to the central bank and thus create a more dynamic market.

Retail savers can expect banks to offer interest rates of around 8.5 Percent or 7.2 Percent after tax. But with inflation at 9.6 Percent returns on cash are now negative in real terms.