Central Bank of the Republic of Turkey
May 24, 2016
As done at the prior meeting on April 20, monetary officials in Turkey left the one-week repo rate and overnight borrowing rate unchanged at 7.5% and 7.25%, respectively, but lopped 50 basis points off the overnight marginal funding rate to 9.5%. The overnight rate corridor has but narrowed by 125 basis points since the March meeting. A statement released today characterizes the latest narrowing as continuing simplification of Turkey’s central bank rate structure within the framework of a still tight monetary stance. Although headline inflation has dropped markedly of late due to lessening pressure on unprocessed foods, core inflation is proving stickier on the downside. Global volatility remains a fact of life and an influence on policy.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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