Central Bank of the Republic of Turkey

November 20, 2014

Turkey’s 8.25% one-week repo rate, 11.5% overnight lending rate, and 7.5% overnight borrowing rate were kept unchanged for a third straight monthly meeting.  During meetings in May-July, they had respectively been lowered by 175 bps, 75 bps, and 50 bps, but officials are now resisting government pressure to ease, pledging instead to not do so until inflation improves significantly.  Like a number of other emerging economies, Turkey has above-target inflation, undesirably low growth and an exchange rate that is susceptible to selling pressure.  CPI inflation is at 9%, 4 percentage points above the long-term target, but growth is running a shade below 3%. 

Copyright 2014, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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