Central Bank of the Republic of Turkey

January 18, 2018

Turkish central bank interest rates were not changed at the latest policy review. The one-week repo rate has been at 8.0% since a 50-basis point increase in November 2016. And the 9.25-7.25% overnight lending/borrowing rate corridor has existing since the lending rate was raised a year ago by 75 bps to 9.25%. Turkey is getting growth contributions from both domestic demand and net exports. The stance has to remain tight, according to a statement, until the core inflation outlook improves significantly and becomes consistent with the central bank target. Currently, actual and expected inflation exceed the target.

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