As widely anticipated, the Central Bank of Turkey on Thursday cut its one-week repo rate by 50bps to 8.25%. The Bank kept the overnight lending rate at 12% but lowered its overnight borrowing rate to 7.5% from 8%.
The adverse impact of exchange rate developments since mid-2013 on annual inflation is gradually tapering off, but elevated food prices have been the main factor limiting the pace of decline in inflation, the Bank said in statement released after the Monetary Policy Committee meeting. In light of these assessments and the recent improvement in global liquidity conditions, the Committee decided to deliver a measured cut in the one-week repo rate, the Bank added.
Recent data point to a modest course in private final domestic demand, meanwhile, with the help of the recovery in foreign demand, exports contribute positively to economic growth, the Bank said, adding that such a demand composition will support disinflation and will lead to a significant improvement in the current account balance in 2014.
The tight monetary policy stance will be maintained until there is a significant improvement in the inflation outlook, the Central Bank reiterated.
Related Articles
Turkish LPG carrier set on fire during Russian drone attack
A Turkish LPG carrier docked at the port of Izmail, Ukraine, was hit by a Russian drone during an attack, sparking a fire on the vessel, which has now been extinguished. According to the Maritime ... more
Kurdish official estimates Iraqi oil losses at $28bn
The 18-month suspension of oil exports from Iraqi Kurdistan has cost the state more than $28bn in lost revenue, a senior Kurdish official has said, as the fiscal damage is compounded by security ... more
Turkey’s Şahinler invests $100mn in Egypt’s garments and tourism sectors
Turkish group Şahinler Holding is expanding its operations in Egypt with new investments exceeding $100mn across the ready-made garments and tourism sectors, Al Sharq Business reported on August 27, ... more
Most Read
-
India’s smart metering push gains momentum
4 months ago
-
The birth of a Kazakh banking empire: ATF Bank
3 years ago