Turkey central bank resists government pressure for post-election cuts

Istanbul

TURKEY's central bank left interest rates unchanged on Tuesday, resisting government pressure for post-election cuts, and said that it would stick to its cautious policy even though it predicts inflation will fall despite prediction for a near-term decline in inflation.

Investors have been hoping that the election setback for the ruling AK Party (AKP) this month would give the central bank some much-needed breathing space to fight inflation. The AKP failed to win a majority in the June 7 election for the first time in more than a decade.