Edit... Dina El Sheriff

The Turkish Central Bank kept the main interest rate at 19% as expected, and reiterated its pledge to keep it above inflation, which the bank expects to cool down after rising to more than 17% as the lira fell.

The lira has declined by 13% since Sahap Kavcioglu was appointed governor of the bank in a sudden change of staff in March. But it rose by 0.3% after the Policy Committee said it would maintain the current position until there was an expected drop in inflation.

As the Central Bank said: "Previous interest rate increases, including in March, have begun to soften demand in the economy. He also dropped a reference in the April monetary policy statement to "maintain a strict monetary stance."

In a poll, all 18 economists expected the Bank to keep the one-week interest rate unchanged, before likely declining in the third quarter.

Foreign investors have fled Turkish assets and disposed of the lira since mid - March, when President Recep Tayyip Erdogan sacked former central bank chief Nasi Agbal's hard - line policy, leading to higher inflation linked to trade in import-dependent Turkey.

Last week, the central bank raised its year-end inflation forecast to 12.2%, from 9.4%, still below market expectations. It expects inflation to fall from April, when it jumped to 17.14%, the highest level in about two years.

The Central Bank Policy Committee stated: "The slowing effect of monetary emphasis on credit and domestic demand is beginning to be observed."

"Taking into account the high levels of inflation and inflation expectations, the current monetary policy position will be maintained until the April inflation forecast falls significantly."