Central Reserve Bank of Turkey

December 14, 2017

Current elevated levels of inflation and recent developments in cost factors have increased the risks on expectations and the pricing behavior. Accordingly, the Committee decided to tighten the monetary policy stance.

Turkish monetary officials accomplished this tweak by lifting the late liquidity window rate to 12.75%, a level still slightly shy of on-year CPI inflation, from 12.25%. Other elements of the monetary stance — an 8.0% one-week repo rate and overnight rates of 9.25% on loans and 7.25% on deposits — were not adjusted. In light of accelerating growth, market watchers are apt to believe that the central bank is still pulling its punches against double-digit inflation that doesn’t appear contained.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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