Turkey’s central bank keeps rate steady amid high inflation

ANKARA, Turkey (AP) — Turkey’s central bank has kept its main interest rate unchanged for a fourth month running even as surging inflation has hit a 20-year high and eroded people’s purchasing power. The bank said Thursday that it was keeping its policy rate constant at 14%. The decision is in line with President Recep Tayyip Erdogan’s opposition to high borrowing costs in a bid to boost growth, investment and exports. The Turkish leader insists that raising interest rates cause inflation, contradicting established economic thinking. A series of rate cuts by the central bank last year triggered a currency crisis and rising consumer prices that have been aggravated by Russia’s invasion of Ukraine and soaring energy costs.