Central Bank of the Republic of Turkey
Central Reserve Bank of the Republic of Turkey Eases Again
July 20, 2016
The unsuccessful coup in Turkey did not restrain Turkish monetary policymakers from taking another step in their campaign to narrow the overnight lending/borrowing interest rate corridor by cutting the lending rate but leaving the deposit rate unchanged. The latest 25-basis point borrowing rate reduction brings the cumulative decline of such to 200 basis points since […] More
A Further “Simplification” of Tight Turkish Monetary Policy
June 21, 2016
The corridor between the Turkish overnight lending and borrowing rates was narrowed a third straight time. After cuts of 25 basis points in March and 50 bps in May, the lending rate was cut by another 50 basis points to 9.0%. At each of these meetings the borrowing rate of 7.25% and one-week repo rate […] More
Central Bank of the Republic of Turkey
May 24, 2016
As done at the prior meeting on April 20, monetary officials in Turkey left the one-week repo rate and overnight borrowing rate unchanged at 7.5% and 7.25%, respectively, but lopped 50 basis points off the overnight marginal funding rate to 9.5%. The overnight rate corridor has but narrowed by 125 basis points since the March […] More
Central Bank of the Republic of Turkey Retains 7.5% Repo Rate
September 22, 2015
“The cautious monetary policy stance will be maintained, by keeping a flat yield curve, until there is a significant improvement in the inflation outlook.” Thus concludes the statement following the latest Turkish central bank meeting where officials left their one-week repo rate at 7.5% along with a 10.75% overnight lending rate and a 7.25% overnight […] More
Turkish Monetary Officials Reluctant to Cut Rates Amid Heightened Risks
May 20, 2015
Monetary Policy Committee members chose to leave the central bank’s one-week repo rate at 7.5%, the overnight lending rate at 10.75%, and the overnight borrowing rate at 7.25%. Consumer prices rose 7.9% in the year to April. A statement released after today’s policy meeting sets a more cautious tone than government officials seek: Recently elevated […] More
An Indirect Central Bank Approach to Containing Turkish Lira Depreciation
April 22, 2015
2015 is not even 31% complete, yet the beleaguered lira has fallen 15% against the dollar. The danger is that currency weakness will lift inflation, which in March stood at 7.6%. The currency’s weakness was amplified by cuts in the one-week repo rate of 50 basis points in January and 25 bps in February on […] More
Central Bank of Turkey Maintains Tight Monetary Policy Settings
December 24, 2014
As expected, monetary officials in Turkey left their overnight lending rate at 11.25%, the overnight borrowing rate at 7.5%, and the key one-week repo rate at 8.25% after December’s policy review. Inflation hovering near 9% is well above next year’s desired 6%, but a released statement today expresses optimism that inflation will recede at a […] More
Turkish Central Bank Defies Government Pressure to Cut Interest Rates Further
October 23, 2014
Turkey’s Monetary Policy Committee kept its one-week repo (8.25%), overnight lending rate (11.25%) and overnight borrowing rate (7.5%) unchanged for a second straight monthly meeting, releasing a statement that affirmed again that “the tight monetary policy stance will be maintained, by keeping a flat yield curve, until there is a significant improvement in the inflation […] More
Turkish Central Bank: Bold Move or Hail Mary Pass
January 28, 2014
The rift between the government of Prime Minister Ergodan and the central bank just got a lot wider. Ergodan could not have been more heavy-handed in pressuring the central bank not to hike interest rates, which it did not do at this month’s scheduled meeting on January 21. That inaction and a deepening government scandal […] More
A Mixed Message from the Central Bank of the Republic of Turkey
February 19, 2013
Turkish monetary officials made a number of decisions. A 5.5% one-week repo rate, which is the main Turkish policy reference rate, was retained. A 25-basis point cut in December had been the first change since a 50-bp cut in August 2011. The overnight interest rate corridor was sliced by 25 basis points to a range […] More
