Turkiye: Central Bank raises lending rate to 46%
Shafaq News/ Turkiye’s Central Bank (TCMB) announced an emergencydecision on Thursday to raise its lending rate to 46%, as policymakers assessedpotential risks to inflation expectations.
In a statement, the central bank said it kept its benchmark one-weekrepo rate unchanged at 42.5% and maintained the overnight borrowing rate at41%.
“Furthermore, TL and FX liquidity measures have been introduced to limitmarket volatility.” the statement added, “In order to maintain the soundfunctioning of financial markets, additional actions will be taken if deemednecessary.”
The bank also signaled a willingness to tighten monetary policy furtherif inflationary pressures worsen.
A comprehensive summary of the bank's discussions and decisions will bereleased within five working days.
The move comes amid a sharp decline in the Turkish lira, which tumbledon Wednesday following the arrest of Istanbul Mayor Ekrem ?mamo?lu, a keypolitical rival of President Recep Tayyip Erdo?an. The arrest rattled investorsand heightened market volatility.
The currency was trading at 39 liras per dollar.
