Turkish Central Bank cuts one-week repo rate by 50bps to 8.25%.

By bne IntelliNews July 17, 2014

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

Poland supports Turkey’s near-dead EU membership bid

Turkish President Recep Tayyip Erdogan received a warm welcome from his Polish peer Andrzej Duda on October 17, as Warsaw said it supported Ankara’s formally ongoing bid to become a member of the ... more

Poland claims there will be “no taboo” in talks with Erdogan

Poland will skip no touchy topics in talks with President Recep Tayyip Erdogan, visiting Warsaw on October 17, the office of President Andrzej Duda said ahead of the visit by the Turkish leader, ... more

Erdogan says he plans talks with lenders on cutting Turkish interest rates

Turkey's President Recep Tayyip Erdogan said on October 13 that he plans to hold talks with both public and private lenders on how to lower interest rates. He did not say, however, when those ... more

Dismiss