Turkey Hikes Late Liquidity Rate to 16.5%

The central bank of Turkey left its key one-week repo rate steady at 8 percent at an emergency meeting on May 23rd 2018. However, policymakers raised its late liquidity window rate by 300bps to 16.5%, following a 75bps hike in the April meeting. The move aims to stop the plunge in the lira which already lost near 24% against the USD since the beginning of the year.
Central Bank of Turkey | Joana Taborda | joana.taborda@tradingeconomics.com 5/24/2018 9:08:48 AM
The overnight lending rate was also kept at 9.25 percent and the overnight borrowing rate at 7.25 percent.

Statement by the Central Bank of the Republic of Turkey:

Current elevated levels of inflation and inflation expectations continue to pose risks on the pricing behavior. Accordingly, the Committee decided to implement a strong monetary tightening to support price stability.

The Central Bank will continue to use all available instruments in pursuit of the price stability objective. Tight stance in monetary policy will be maintained decisively until inflation outlook displays a significant improvement.

It should be emphasized that any new data or information may lead the Committee to revise its stance.

Turkey Hikes Late Liquidity Rate to 16.5%