Turkish central bank keeps its key interest rate unchanged, pausing a series of hikes

Turkey's central bank left its key interest rate unchanged at 45% on Thursday, pausing a series of aggressive rate hikes aimed at taming high inflation.

The central bank said it was keeping the benchmark one-week repo rate on hold, according to a statement. It was the bank's first interest rate decision under its newly appointed governor, Fatih Karahan.

The move was in line with expectations that the rate would be kept constant after the bank said last month that monetary tightness needed to "establish the disinflation course" was achieved.

On Thursday, the bank suggested the current rate would be maintained until "there is a significant and sustained decline in the underlying trend of monthly inflation."

President Recep Tayyip Erdogan appointed Karahan as central bank governor on February 3, replacing Hafize Gaye Erkan who resigned after claims of...