Turkey Raises Overnight Lending Rate By 50bps


In its August meeting, the Monetary Policy Committee of the Central Bank of the Republic of Turkey decided to leave the one-week repo policy rate unchanged at 4.5 percent. The borrowing rate has been kept at 3.5 percent, while the lending rate has been increased from 7.25 percent to 7.75 percent, to prevent further slide in the lira.

Turkey's central bank raised its overnight lending rate by 50 basis points to maintain flexibility of the lira amid the possibility that the U.S. Federal Reserve may start tapering its bond-buying programme, global economic uncertainties and volatility in capital flows. 

Turkey's central bank said it expected inflation to begin falling from August and that it would maintain its cautious policy stance until the outlook for inflation falls within its medium term targets.  The bank also signalled additional monetary tightening measures if needed.

Turkey Raises Overnight Lending Rate By 50bps


TCMB | Nuno Fontes | nuno@tradingeconomics.com
8/20/2013 1:31:57 PM