Turkish Monetary Policy on Hold, Too

May 29, 2012

The 7-day repo rate of the Central Bank of the Republic of Turkey was kept at 5.75% for another month as expected.  It was last changed via a 50-basis point cut on August 11, 2011.  Officials also made no change in the 5.0% overnight borrowing rate or the 11.5% overnight lending rate.  A statement today stresses global uncertainties. CPI inflation of 11.1% in the year to April was up from 10.4% in March, but officials attribute the spike to energy largely and predict it will subside to about 6.5% by yearend.  A sharp drop in consumer spending last quarter has partly reversed, and export demand continues.

Copyright 2012, Larry Greenberg.  No secondary distribution without express permission.  All rights reserved.



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