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Emergency meeting decision from the Central Bank: Interest rate hike implemented

The Central Bank of the Republic of Turkey (TCMB) held an unexpected meeting in light of recent developments. At the meeting, it was decided to increase the overnight lending interest rate to 46 percent.

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Emergency meeting decision from the Central Bank: Interest rate hike implemented

According to the Central Bank's decision, the one-week repo auction interest rate, which is set as the policy rate, was kept at 42.5 percent. The Central Bank's overnight borrowing interest rate remained fixed at 41 percent.  

The interest rate decisions were taken following fluctuations in financial markets after the detention of Istanbul Metropolitan Municipality Mayor Ekrem İmamoğlu. In a statement made earlier in the day, the Central Bank announced that it would sell dollars if deemed necessary.

The increase in the overnight lending interest rate was evaluated as a step that could affect the costs of banks meeting their liquidity needs. Keeping the policy rate constant was interpreted as a continuation of the current monetary policy strategy.

Minister of Treasury and Finance Mehmet Şimşek made a post on his social media account yesterday, noting that the economic program is continuing. Despite Şimşek's message, economist İris Cibre argued that the new program had 'collapsed' and criticized the detention of İmamoğlu.


News Source: 12punto

CBRT interest rates