Central Bank of Turkey

Central Bank of the Republic of Turkey: No Further Interest Rate Hike Now

March 18, 2014

Excessive inflation, fed in part by selling pressure on the lira, a big current account deficit, and lessening investor ease with emerging market investments prompted a “strong and front-loaded monetary tightening” in late January that saw hikes of 425 basis points in Turkey’s overnight lending rate, 450 bps in the overnight borrowing rate, and 550 […] More

Sharp Response from Turkey’s Central Bank Lifts Lira

January 29, 2014

After a late-night emergency monetary policy meeting in Turkey, the overnight borrowing and lending rates were raised by 450 and 425 basis points, respectively, to 8.0% and 12.0%, while the one-week repo rate increased by 550 bps to 10.0%.  These changes far eclipsed even the boldest forecasts and initially at least boosted the Turkish lira […] More

Central Bank of the Republic of Turkey: Different Measures for Different Needs

May 16, 2013

Amid slack economic growth and inasmuch as CPI inflation had declined to 6.1% in April from 7.3% in March and 7.0% in February, Turkish monetary officials reduced the one-week repo rate to 4.5% from 5.0%, which matches the cut in April and exceeds the 25-bp move that analysts were anticipating.  Because officials also fear that […] More

Monetary Policy Tweaked by the Central Bank of the Republic of Turkey

September 18, 2012

Monetary officials cut the overnight lending rate to 10.0% from 11.5%, while keeping the overnight borrowing rate unchanged at 5.0%.  A statement from officials declares that “narrowing the interest rate corridor would support financial stability,” then adding that “if deemed necessary, a measured step in the same direction may be taken in the forthcoming period.”  […] More

Turkish Monetary Policy Rates Unchanged

March 27, 2012

The Central Bank of the Republic of Turkey left unchanged the 5.75% 7-day repo rate, the 11.5% overnight lending rate, which had been cut in February by 100 basis points, and the 5.0% overnight borrowing rate, which has been at that level since August 2011.  The 7-day repo rate has been at a record low […] More

Turkish Central Bank Tweaks Stance for First Time since October

February 21, 2012

The main monetary policy rate, the one-week repo, was left at 5.75%, its level since a 50-basis point cut last August.  The overnight borrowing rate of 5.0% since a 350-bp hike after the August meeting also was not changed.  However, the overnight lending rate was cut to 11.5% from 12.5%, thus narrowing the spread against […] More

Unchanged Turkish Monetary Policy Settings Following First Meeting of 2012

January 24, 2012

The monetary authorities at the Central Bank of the Republic of Turkey declined to change its policy stance, which had been tightened last October to prevent second-order effects from temporarily accelerated price increases late in 2011.  The one-week repo rate, which is the primary policy rate, has been at 5.75% since last August, and there […] More

No Further Turkish Monetary Policy Changes for Now

August 23, 2011

At an interim unscheduled meeting on August 4, policy makers at the Central Bank of the Republic of Turkey sliced their benchmark one-week repo rate by 50 basis points to 5.75% and narrowed the corridor between their overnight lending and borrowing rates by raising the latter 350 bps to 5.0% but not changing the former’s […] More

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