ISTANBUL, April 26 (Reuters) - Turkey's central bank hiked the highest of the four rates it uses to set policy by 50 basis points on Wednesday, in an unexpected move unlikely to quell persistent concerns about the independence of monetary policy under President Tayyip Erdogan.
In its first policy-setting meeting since voters narrowly backed an April 16 referendum to change the constitution and hand Erdogan sweeping new powers, the central bank lifted its late liquidity window to 12.25 percent from 11.75 percent.
It left its benchmark repo rate on hold at 8 percent.
All 14 economists polled by Reuters had predicted the bank would leave the repo rate unchanged, as well as the overnight lending rate, at 9.25 percent, and the overnight borrowing rate, at 7.25 percent. Those rates were also unchanged.
The outlook was not unanimous for the late liquidity window. Eight of the economists predicted the bank would leave the late liquidity window at 11.75 percent, while six forecast a hike.
The central bank has repeatedly refrained from lifting the repo rate, causing some concern among investors about its independence in the face of criticism from Erdogan, who has declared himself an "enemy" of interest rates.
(Reporting by David Dolan and Nevzat Devranoglu; Editing by Catherine Evans) ((david.dolan@tr.com; +90 212 350 7046; Reuters Messaging: david.dolan.thomsonreuters.com@reuters.net))
Keywords: TURKEY CENBANK/
