Central Bank of the Republic of Turkey

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

A 75-Basis Point Hike in Turkey’s Overnight Lending Rate

January 24, 2017

Officials at the Central Bank of the Republic of Turkey project only moderate growth consistent, under ordinary conditions, with declining inflation. But because of domestic political uncertainty and global geopolitical strains that have weighed on the currencies of many emerging markets, the lira fell quite significantly. The lagged upward effect of such on Turkish inflation […] More

Central Bank of the Republic of Turkey

December 20, 2016

Turkish monetary policy settings were held unchanged at this month’s meeting. The one-week repo rate was left at 8.0% following a 50-basis point hike at the prior meeting on November 24. The marginal funding rate, which was raised 25 bps to 8.5% in November, stays at the level, and the key borrowing rate of 7.25% […] More

Central Bank of the Republic of Turkey

September 22, 2016

Both the overnight marginal funding rate and late liquidity lending rate have been cut by 25 basis points to 8.25% and 9.75%. The 7.5% one-week repo rate and 7.25% overnight borrowing rate were not changed. These moves constitute both and easing of the policy stance and a “measured and cautious” further step toward simplification of […] More

Central Bank of the Republic of Turkey Cuts Marginal Funding Rate Again

August 23, 2016

The MFR had earlier been reduced by 25 basis points in March, 50 bps each in April, May and June, and 25 bps to 8.75% in July. Today’s cut was by 25 basis points to 8.5% versus 10.75% at the start of 2016. The most recent of these easings were implemented in spite of a […] More

Central Reserve Bank of the Republic of Turkey Eases Again

July 20, 2016

The unsuccessful coup in Turkey did not restrain Turkish monetary policymakers from taking another step in their campaign to narrow the overnight lending/borrowing interest rate corridor by cutting the lending rate but leaving the deposit rate unchanged. The latest 25-basis point borrowing rate reduction brings the cumulative decline of such to 200 basis points since […] More

A Further “Simplification” of Tight Turkish Monetary Policy

June 21, 2016

The corridor between the Turkish overnight lending and borrowing rates was narrowed a third straight time.  After cuts of 25 basis points in March and 50 bps in May, the lending rate was cut by another 50 basis points to 9.0%.  At each of these meetings the borrowing rate of 7.25% and one-week repo rate […] More

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