Turkish Central Bank keeps interest rates on hold, says policy to stay tight.

By bne IntelliNews February 18, 2014

The Central Bank kept its interest rates unchanged on Tuesday after last month’s aggressive rate hike.

The Bank kept one-week repo rate at 10%, overnight lending rate at 12%, and borrowing rate at 8%. Analysts had not predicted any rate hike prior to Tuesday’s regular monetary policy committee (MPC) meeting. 

Tight monetary policy stance will be maintained until there is a significant improvement in the inflation outlook, the Central Bank said in a statement released after the MPC meeting. The Bank expects inflation to hover above the 5% target for some time due to recent tax adjustments, exchange rate developments, and elevated food prices.

Q1 data indicate some deceleration in private final domestic demand, the Bank said, adding that there is a gradual slowdown in loan growth stemming from the tight monetary policy stance, the recent macroprudential measures, and weak capital flows. Economic growth is likely to increase with the help of the recovery in foreign demand, and contribution of net exports, according to the statement.

The Bank also expects a significant improvement in the current account deficit in 2014.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Four Turkish companies reportedly consider IPOs in London or Istanbul

Turkey’s Enerjisa, Memorial Health Group, Tab Gida and Baskent Gaz are considering public offerings in London or Istanbul, unnamed sources told Bloomberg on July 19. Enerjisa, a 50:50 JV ... more

Turkey bars entry to thousands from more than 140 nations over suspected IS ties

Turkey has arrested and deported thousands of people suspected of having links to the Islamic State group according to a Turkish interior ministry report entitled “Turkey’s Fight ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Most Read

  1. Erdogan lashes out at Germany, Nato, says "God willing" he'll have Russian missiles soon
    7 hours ago
  2. STOLYPIN: Donbas continues to be as unpredictable as it is unloved
    16 hours ago
  3. Wildfires hit Croatia and Montenegro’s Adriatic coast
    7 days ago
  4. EU allows Gazprom to use an additional 40% of OPAL gas pipeline's capacity
    1 day ago
  5. Tajik president’s 23-year old daughter appointed deputy head of largest Tajik bank
    5 days ago
  1. CHINA RISING: When sleeping giants meet
    14 days ago
  2. Erdogan lashes out at Germany, Nato, says "God willing" he'll have Russian missiles soon
    7 hours ago
  3. Belarus’ retail king Euroopt goes on the road
    20 days ago
  4. STOLYPIN: Russia’s cyber-challenge cuts both ways
    22 days ago
  5. Siemens considers quitting Russia
    11 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss