Central Bank raises overnight lending rate to 46 percent
ANKARA
In an interim meeting convened to address recent financial market developments, the Central Bank hiked the overnight lending rate to 46 percent on March 20.
The bank maintained the policy rate (one-week repo auction rate) at 42.5 percent and the overnight borrowing rate at 41 percent.
The decision reflected the bank's assessment of risks posed by current market conditions to the inflation outlook, underscoring its commitment to supporting a tight monetary policy to combat inflationary pressures.
To further stabilize financial markets, the Central Bank introduced measures to manage Turkish lira (TL) and foreign exchange (FX) liquidity, aiming to limit market volatility. It underlined that additional measures will be implemented if necessary to maintain orderly market conditions.
"Monetary policy stance will be tightened in case a significant and persistent deterioration in inflation is foreseen," the bank said.
A detailed summary of the bank's discussions and decisions will be published within five working days.
The bank also decided to suspend the one-week repo auctions for a period of time.
