Turkish central bank doesn't change rates as inflation soars

Turkey’s central bank has kept interest rates unchanged for a third month as consumer prices surge at an eye-popping pace

ISTANBUL -- Turkey’s central bank kept interest rates unchanged for a third straight month Thursday as consumer prices surge at an eye-popping pace, coming after a series of rate cuts last year triggered a currency crisis that has made it difficult for people to buy basic goods.

The latest official statistics showed inflation above 54.4%. The bank said in a statement that inflation has been driven by “rising energy costs resulting from the heightened regional conflict,” referring to Russia's war in Ukraine, and supply side factors affecting food prices.

It said it expects inflation to ease following measures it has taken to boost the economy and a resolution of the conflict.

Other central banks around the world are moving to raise interest rates as inflation reaches the highest levels in decades, including the U.S. Federal Reserve and the Bank of England. The Fed raised its key rate Wednesday to target inflation that hit 7.9% in February, while the Bank of England raised its key rate Thursday for the third time since December to ease inflation that rose to an annual 5.5% in January.