U.S. Markets closed

Turkey holds rates steady ahead of key election in Istanbul

Laura Pitel in Ankara

Turkey’s central bank kept interest rates on hold on Wednesday ahead of a critical Istanbul election. Analysts had warned that — despite a sharp slump in economic growth, signs of cooling inflation and a recent rally in the Turkish lira — a cut would be premature and could trigger a fresh currency slide. Renewed currency volatility could pose a risk to President Recep Tayyip Erdogan’s efforts to regain control of Istanbul in a rerun of mayoral election that will take place on June 23.