Central Bank of the Republic of Turkey

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

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 […] More

Central Bank of the Republic of Turkey Retains 7.5% Repo Rate

September 22, 2015

“The cautious monetary policy stance will be maintained, by keeping a flat yield curve, until there is a significant improvement in the inflation outlook.”  Thus concludes the statement following the latest Turkish central bank meeting where officials left their one-week repo rate at 7.5% along with a 10.75% overnight lending rate and a 7.25% overnight […] More

Turkish Monetary Officials Reluctant to Cut Rates Amid Heightened Risks

May 20, 2015

Monetary Policy Committee members chose to leave the central bank’s one-week repo rate at 7.5%, the overnight lending rate at 10.75%, and the overnight borrowing rate at 7.25%.  Consumer prices rose 7.9% in the year to April.  A statement released after today’s policy meeting sets a more cautious tone than government officials seek: Recently elevated […] More