Turkish Monetary Policy

No Interest Rate Changes after Monthly Turkish Monetary Policy Committee Meeting

September 25, 2014

As expected, officials at the Central Bank of the Republic of Turkey left their signature 1-week repo rate at 8.25%, their overnight borrowing rate at 7.5%, and their overnight lending rate at 11.25%.  The previous last meeting to end without an interest rate change was on April 24th.  In August, the lending rate was cut […] More

A Somewhat Peculiar Statement from the Central Bank of the Republic of Turkey

August 27, 2014

The monetary policy committee left its one-week repo rate and overnight borrowing rate unchanged at 8.25% and 7.5%, respectively, but surprised analysts with a 75-basis point cut of the overnight lending rate to 11.25%.  That rate hadn’t changed since a 425-basis point hike to 12.0% on January 29.  At that same time, the repo rate […] More

Turkish Monetary Policy Eased Again

July 17, 2014

Following cuts of 50 basis points in May and 75 bps in June, the Monetary Policy Committee at the Central Bank of the Republic of Turkey authorized a 50-basis point cut of its one-week repo rate.  The overnight borrowing rate, which hadn’t been changed at those two earlier meetings, was this time sliced to 7.5% […] More

Turkish One-Week Repo Rate Cut to 9.5% from 10.0%

May 22, 2014

Citing lower market interest rates, less uncertainty in general, and improved risk premium indicators, officials at the Central Bank of the Republic of Turkey reduced the hey repo interest rate, which had been previously at 10.0% since a 550-basis point increase in mid-January.  The overnight lending and borrowing rates were left unchanged at 12% and […] More

Central Bank of the Republic of Turkey: Mixed Message

April 24, 2014

The latest policy statement from Turkish monetary officials struck a balance between guarding the lira against selling pressure and deferring to government pressure to ease.  In order to protect the exchange rate and blunt the impact of depreciation on actual and expected inflation, the one-week repo rate had been lifted from 4.5% to 10.0% in […] More

Central Bank of the Republic of Turkey Hoping it’s Done Enough to Quell Lira Crisis

February 18, 2014

For the past couple of years, Turkish monetary policy has been a confusing stew, with a variety of policy tools chasing a variety of separate policy goals.  Some interest rates have been raised, others cut, and the authorities have also monkeyed around with reserve requirement changes to the puzzlement of investors.  With little confidence in […] More

Central Bank of the Republic of Turkey

January 21, 2014

Monetary officials again left the one-week repo rate at 4.5%, the overnight lending rate at 7.75%, and the overnight borrowing rate at 3.5%.  The most recent changes in these interest rates were a 50-basis point cut in the repo rate and overnight borrowing rate last May and hikes of 75 basis points last July followed […] More

Central Bank of the Republic of Turkey

December 17, 2013

Members of Turkey’s monetary policy committee agreed to leave settings unchanged after this month’s interest rate meeting and released a statement that adopts a guarded tone, affirming that “the cautious monetary policy stance should be maintained until the inflation outlook is in line with the medium term targets.”  The statement indicates that “interbank money market […] More

Central Bank of the Republic of Turkey: No Rate Change but….

November 19, 2013

Key Turkish interest rates — a 4.5% one-week repo rate, a 7.75% overnight lending rate and a 3.5% overnight borrowing rate — were left unchanged by the Monetary Policy Committee.  However, a decision was reached to eliminate monthly repo rates in hopes of reducing selling pressure on the lira, which has boosted inflation. Inflation indicators […] More

No Change in Turkish Monetary Policy Stance but Tighter Bias

October 23, 2013

The Monetary Policy Committee maintained the one-week repo rate at 4.5%, the overnight lending rate at 7.75%, and the overnight borrowing rate at 3.5%.  There were no changes either at the previous meeting on September 17.  Before that, the overnight lending rate was raised in July and August by a total of 125 basis points; […] More

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