Turkey’s central bank kept interest rates on hold on January 16 amid growing calls for a fiscal stimulus as inflation is surging.

The bank kept its benchmark one-week repo rate at 24%, while inflation in December was galloping at 20%. After hitting a peak of more than 25% in October, Turkey started taming the rate of inflation in November when it dropped to 21.6%.

The bank’s monetary policy committee restated a previous commitment to maintaining high rates until inflation displays “signifi...

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