Turkey keeps one-week repo rate to 8%, seeks to ‘contain’ inflation

By Susanna Moon

Chicago, Jan. 24 – The Central Bank of Turkey’s Monetary Policy Committee decided to maintain the one-week repo rate at 8%.

The marginal funding rate for overnight interest rates was increased to 9¼% from 8½% and the lending rate for late liquidity window interest rates to 11% from 10%.

The bank chose to bolster monetary tightening “to contain the deterioration in the inflation outlook,” according to a bank statement.

Recent data show a partial economic recovery as demand from European Union economies help boost exports while demand locally “displays a weaker course,” the bank said.

Meanwhile, the inflation outlook has more upside risks due to large swings in the exchange rates, the bank noted.

“The significant rise in inflation is expected to continue in the short term due to lagged pass-through effects and the volatility in food prices,” the bank said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.