Turkish Monetary Policy
Central Bank of the Republic of Turkey: No Further Interest Rate Changes in September
September 17, 2013
As analysts suspected, Turkey’s Monetary Policy Committee agreed to leave the overnight lending rate at 7.75%, having hiked such by 75 basis points in July and a further 50 bps in August. The one-week repo rates and overnight borrowing rates of 4.5% and 3.5% were also not changed. A comparatively brief released statement promised to […] More
Turkish Monetary Policy Tightened Further in Anti-Inflationary Move
August 20, 2013
The overnight central bank lending rate, which was boosted 75 basis points in July, has been raised by a further 50 bps to 7.75% in an action that caught analysts by surprise. In a statement of explanation, officials cited dangers posed by above-target inflation and financial market volatility (i.e. lira depreciation) and left the door […] More
Central Bank of the Republic of Turkey
July 23, 2013
Turkish inflation had spiked more than a percentage point to 8.3% in June, fed partly by food and energy pressures, and Turkish monetary officials responded with a 75-basis point increase of the overnight lending rate to 7.25%. The overnight borrowing rate was left at 3.5%. Both rates had been cut earlier this year, including 50-bp […] More
Central Bank of the Republic of Turkey
June 18, 2013
Along side images from Syria and Afghanistan, the international press has been full of photos from Turkey over the past fortnight depicting extreme civil unrest — just the kind of backdrop one might expect to create volatile capital movements. Today’s statement from the Central Bank of the Republic of Turkey observes capital flow volatility blames […] More
A Further Adjustment Made to Turkish Monetary Policy Settings
March 26, 2013
Officials at the Central Bank of the Republic of Turkey cut the overnight lending rate to 7.5% from 8.5% but left the 5.5% one-week repo rate at 5.5%, the overnight borrowing rate at 4.5%, and reserve requirements at 11.5%. The repo rate, which is the main indication of policy, has been 5.5% since a 25-basis […] More
A Mixed Message from the Central Bank of the Republic of Turkey
February 19, 2013
Turkish monetary officials made a number of decisions. A 5.5% one-week repo rate, which is the main Turkish policy reference rate, was retained. A 25-basis point cut in December had been the first change since a 50-bp cut in August 2011. The overnight interest rate corridor was sliced by 25 basis points to a range […] More
Central Bank of the Republic of Turkey Cuts Overnight Interest Rates
January 22, 2013
While keeping the one-week benchmark repo rate unchanged at 5.5%, Turkish monetary officials reduced the overnight lending rate to 8.75% from 9.0% and the overnight borrowing rate to 4.75% from 5.0%. At the prior meeting on December 18, the repo rate was changed for the first time in sixteen months, dropping 25 basis points. Following […] More
First Cut of Turkey’s One-Week Repo Rate since August 2011
December 18, 2012
Turkey monetary officials continue to face conflicting imperatives. Growth last quarter (up just 1.6% from 3Q11) was its weakest since 2009, and CPI inflation has dipped under 6.5%. However, a current account deficit is shrinking only gradually and at some 6.5% of GDP remains greater than desired. An assortment of tools are employed to balance […] More
Overnight Turkish Lending Rate Sliced by Another 50 Basis Points
November 20, 2012
The overnight lending – borrowing rate differential was reduced further. Today’s lending rate cut of 50 basis points followed reductions of 50 bps in October and 150 bps in September. All the while, the overnight borrowing rate has stayed at 5.0%, where such has been anchored since August 2011. August 2011 was also the time […] More
Another Cut in Turkey’s Overnight Central Bank Lending Rate
October 18, 2012
The Central Bank of the Republic of Turkey administers monetary policy with two interest rate levers. The main operative tool, the one-week repo rate was left unchanged at 5.75%, its level since a 50-basis point reduction in August 2011. The other lever is the differential between the overnight lending and overnight borrowing rate. The former […] More
