At its 20 October meeting, the Monetary Policy Committee (MPC) left the policy rate unchanged at 5.75%, as was expected by market analysts. The Central Bank also held the overnight borrowing rate steady at 5.0%, but raised the overnight lending rate to 12.5% from 9.0%. The widening in the rate corridor is aimed at curbing the growing current account deficit by weakening the currency and slowing the pace of credit expansion. The Bank stated that it expects a significant increase in inflation in the coming months due to excessive depreciation of the lira and an unfavourable base effect from food prices. On 26 October, monetary authorities cut the reserve requirement ratios (RRR) on lira deposits with a maturity of up to one month to 11.0% from 16.0%. In addition, deposits with a maturity of three months were cut to 11.0% from 12.5% and six month maturities were cut to 8.0% from 9.0%. The move is designed to provide TRY 11 billion in liquidity to the banking system, according to the Bank's estimate.
Turkey Monetary Policy
Central Bank keeps policy rate on hold
October 20, 2011
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Turkey Economic News
October 13, 2016
The current account balance recorded a USD 1.8 billion deficit in August (July: USD 2.7 billion deficit).
October 10, 2016
In August, industrial production expanded a calendar-adjusted 2.2% compared to the same month last year.
October 3, 2016
The Manufacturing Purchasing Managers’ Index (PMI), produced by the Istanbul Chamber of Industry (ICI) and IHS Markit, increased slightly to 48.3 in September from August’s 47.0, which had marked a multi-year low.
October 3, 2016
In September, consumer prices increased 0.18% over the previous month.
September 26, 2016
The Real Sector Confidence Index published by the Central Bank increased from August’s 103.6 to 106.5 in September.