Despite high inflation, Turkey keeps interest rate unchanged

ANKARA, Turkey (AP) — Turkey’s central bank kept its key interest rate unchanged for a second consecutive month despite soaring inflation that has left many in the country struggling to purchase food and basic goods. The bank said Thursday that it decided to keep its policy rate at 14%. Last month, it put its rate-cutting policy on hold after reducing borrowing costs by 5 percentage points since September. The string of rate cuts triggered a currency crisis and sent consumer prices skyrocketing. Typically, central banks increase interest rates to fight surging inflation, which many have or are planning to do worldwide. But Turkish President Recep Tayyip Erdogan strongly opposes high borrowing rates.