Turkish Central Bank Raises Interest Rates

 

Update: Turkish Central Bank Raises Interest Rates

 

The Turkish Central Bank has decided to raise the interest rate on one-week repo transactions to 42.5%.

 

In a new move to combat rising inflation, the Turkish Central Bank announced on Thursday a decision to increase the interest rate by 250 basis points, reaching 42.5%. This increase is part of the bank's efforts to achieve financial stability and economic balance.

 

Limited Improvement in Pricing Behavior and Inflation Expectations

According to the statement issued by the Central Bank, estimates indicate a limited improvement in pricing behavior and inflation expectations during last November. The statement notes that the inflation rate "remained in line with expectations," indicating continued efforts to control economic conditions.

 

Factors Contributing to the Stability of the Lira and Financial Conditions

The statement highlighted that improved external financing conditions, continuous increases in reserves, support for the demand budget for the current account, along with an increase in local and foreign demand for Turkish lira assets, strongly contribute to the stability of the exchange rate and the effectiveness of monetary policy.

 

Expectations for Inflation Decline and Financial Stability

In conclusion, the bank stated that the monetary policy committee slowed down the pace of monetary tightening, emphasizing the approach of the level required to achieve a decline in inflation and financial stability.

 

شراء عقار في اسطنبول

Finds out more about Properties in Istanbul

 

Increase in the Bank's Total Reserves

In a related context, the Turkish Central Bank announced an increase in the total reserves of the bank by $1.154 billion in the week ending December 15, reaching $142.5 billion, the highest level ever.

 

For more information on the Central Bank's decision, you can click [here]

contact icon
Register for Free Consultation