Central Bank of the Republic of Turkey

December 17, 2013

Members of Turkey’s monetary policy committee agreed to leave settings unchanged after this month’s interest rate meeting and released a statement that adopts a guarded tone, affirming that “the cautious monetary policy stance should be maintained until the inflation outlook is in line with the medium term targets.”  The statement indicates that “interbank money market rates will materialize close to 7.75 percent and the weighted average cost of funding will materialize at 6.75 percent or above in the forthcoming period.”  Turkey has an overnight borrowing rate of 3.5% but a much higher overnight lending rate of 7.75%.  The one-week repo rate stays at 4.5%.  Consumer prices rose 7.3% between November 2012 and November 2013.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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