Turkish Central Bank Raises Interest Rates
- In a last-minute development, the Central Bank of the Republic of turkey (TCMB) announced its first interest rate decision of the year.
- Contrary to expectations, the Central Bank of the Republic of Turkey reduced the policy rate by 100 basis points to 37 percent.
- The Board also lowered the overnight lending rate from 41 percent to 40 percent, and the overnight borrowing rate from 36.5 percent to 35.5 percent.
Turkey’s Central bank Cuts Interest Rates
In a last-minute development, the Central Bank of the Republic of turkey (TCMB) announced its first interest rate decision of the year. The TCMB lowered the policy rate by 100 basis points to 37 percent.Economists had predicted a rate cut to 36.5 percent.
Contrary to expectations, the Central Bank of the Republic of Turkey reduced the policy rate by 100 basis points to 37 percent.
The Board also lowered the overnight lending rate from 41 percent to 40 percent, and the overnight borrowing rate from 36.5 percent to 35.5 percent.
The Monetary Policy Committee noted that the main trend in inflation has decreased, emphasizing that the tight monetary policy stance will continue until price stability is achieved.
the statement released by the Board included the following:
The Monetary Policy Committee (the Committee) has decided to reduce the one-week repo auction rate, which is the policy rate, from 38 percent to 37 percent. The Committee also reduced the Central Bank’s overnight lending rate from 41 percent to 40 percent, and the overnight borrowing rate from 36.5 percent to 35.5 percent.
INFLATION OUTLOOK AND MAIN TREND
The main trend in inflation decreased in December. Preliminary data indicate that monthly consumer inflation increased in January,led by food,but the increase in the main trend was limited. Indicators for the last quarter suggest that demand conditions…