Turkey's central bank has no plans to raise interest rates

The Central Bank of Turkey plans to keep its interest rate at 14% despite the Russian-Ukrainian conflict and rising energy prices. Meanwhile, domestic inflation already topped 54% last month. 

In January, the central bank suspended its rate easing cycle after inflation reached its highest level in 20 years in November and December. Prices have risen significantly across the board as the lira has lost 44% against the dollar in 2021 and another 10% this year. 

Inflation is expected to rise to 70% due to a further fall in the lira, but the President has been slow to abandon his new economic program, which prioritizes the current account surplus, economic growth, exports, credit and employment. 

National economists are forecasting a widening current account deficit as income from tourism, one of the main sources of fuel for the country's economy, falls amid the conflict. 

The pressure on the lira is expected to continue and the authorities will need to respond to the changing situation. The central bank will announce its final decision on March 17.