The Committee on Monetary Policy of the Central Bank of the Republic of Turkey (Central Department Store) increased the interest rate on Overnite loans (one-day lending) to 46 percent.
In the message on the decision of the interim meeting of the Committee on Monetary Policy adopted by the Central Department Store, it is said that the Committee, chaired by Yashar Fatikha Karakhan, appreciated the development of the situation in financial markets.
At the meeting, the risks were considered that these events could represent for the forecast of inflation, and measures were taken to maintain a strict monetary policy. Accordingly, the Committee decided to increase the interest rate of the Central Bank on Overnight loans to 46 percent.
The Council retained the interest rate of the auction of a single -week repo at the level of 42.5 percent, and the interest rate on loans by the overnight of the Central Bank at 41 percent.
“measures have been taken to ensure the liquidity of TL and foreign currency to limit the volatility in the market. Additional measures will be taken if it is considered necessary to maintain the effective functioning of financial markets. In case of significant and constant worsening inflation, the position of the monetary policy will be toughened,” the Central Bank.
In the statement, the committee will make decisions in predictable, based on data and transparent framework, and the resume of the meeting of the Committee on Monetary Policy will be published within five working days.