Central Bank of the Republic of Turkey

Turkish Monetary Policy Tightened Significantly Further

June 7, 2018

With PPI inflation over 20% and CPI inflation above 12%, monetary officials raised Turkey’s one-week repo rate by an additional 125 basis points to 17.75%, bringing the increase of that newly designated main policy rate to 9.75 percentage points in the past ten days. In a statement from the Monetary Policy Committee of the Central […] More

Central Bank of the Republic of Turkey

May 24, 2018

The world’s biggest currency market story earlier this week had been the accelerating dive of the Turkish lira, exacerbated by its central bank’s benign neglect of a deepening currency rout. To be sure, monetary officials were simply abiding by the substantial pressure from Turkish President Erdogan not to raise interest rates. A 275-basis point cumulative […] More

Central Bank of the Republic of Turkey

April 25, 2018

Turkish monetary policy was tightened slightly at the latest review. Most of the central bank’s interest rates — an 8.0% one-week repo, a 7.25% marginal borrowing rate, a 9.25% overnight marginal funding rate, and a rate of zero percent for the late liquidity window borrowing rate — were not changed. But a released statement announced a […] More

Dollar Broadly Stronger… Gold and Global Bonds Down

April 25, 2018

The Mexican peso extended its recent swoon, falling 1.0% against the dollar and moving past the 19 per USD threshold. U.S./Mexican relations appear headed for another dive, as Lopez Obrador, the former Mexico City mayor and a populist, retained a huge lead in presidential election polls. The election is just over two months away. It’s […] More

Central Bank of the Republic of Turkey

January 18, 2018

Turkish central bank interest rates were not changed at the latest policy review. The one-week repo rate has been at 8.0% since a 50-basis point increase in November 2016. And the 9.25-7.25% overnight lending/borrowing rate corridor has existing since the lending rate was raised a year ago by 75 bps to 9.25%. Turkey is getting […] More

Central Bank of the Republic of Turkey

October 26, 2017

Turkey’s 9.25% marginal funding rate, 7.25% overnight borrowing rate, and 8.0% one-week repo rate were all left unchanged. The last change made in any of these rates was a 75-basis point hike in the marginal funding rate in January of 2017. The Monetary Policy Committee released a statement today defending the decision not to relax […] More

Central Bank of the Republic of Turkey

September 14, 2017

At this month’s review of Turkish monetary policy, no changes were made in the structure of interest rates. A tight stance is in place because of elevated total and core inflation. The one week repo rate has been at 8.0% since a 50-basis point increase last November. The marginal funding rate has been 9.25% since […] More

Central Bank of the Republic of Turkey Fails to Loosen Policy Stance

July 27, 2017

The central bank lending rate has been at 9.25% since hikes of 25 basis points in November 2016 and 75 bps in January of this year. A statement released after the latest policy review observes improved domestic demand and inflation but cautions that “although recent improvements in cost factors and expected partial correction in food […] More

Turkish Central Bank Leaves Interest Rates at Already Elevated Levels

April 26, 2017

The Central Bank of Turkey’s overnight lending rate had previously been raised by 25 basis points in late November and 75 basis points two months later to the current level of 9.25%. The one-week repo rate was also lifted back in November by 50 basis points to its present level of 8.0%, while the overnight […] More

Central Bank of the Republic of Turkey: No Further Rate Hikes This Time

March 16, 2017

A statement released after the latest policy meeting observes that inflation has risen sharply lately, notes that monetary policy has been tightened sharply over recent months, and elects to stay with the status quo this time. Since November 25, the overnight funding rate has been raised a full percentage point to 9.25%, and the one-week […] More

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