Central Bank of the Republic of Turkey

December 20, 2016

Turkish monetary policy settings were held unchanged at this month’s meeting. The one-week repo rate was left at 8.0% following a 50-basis point hike at the prior meeting on November 24. The marginal funding rate, which was raised 25 bps to 8.5% in November, stays at the level, and the key borrowing rate of 7.25% is also unchanged as it had been after the previous meeting. Officials are balancing conflicting developments according to a released statement. “Exchange rate movements due to recently heightened global uncertainty and the increase in oil prices pose upside risks on the inflation outlook. Yet, the aggregate demand developments restrain these effects.” Policy in the future will be guided by inflation and changes in expected inflation.

Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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