Turkey Raises Lending Costs to Curb Double-Digit Inflation
- Central bank boosts late liquidity rate by 75bps to 11.75%
- Overnight lending, borrowing, one-week repo rates unchanged
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Turkey’s central bank raised a key interest rate on Thursday and said it will maintain a tight monetary policy until the inflation rate, which is running at more than double the regulator’s target, improves.
The bank increased the late liquidity window rate by 75 basis points to 11.75 percent, in line with the median estimate in a Bloomberg survey of economists. It kept its one-week repo, overnight lending and borrowing rates unchanged. Illustrating the closer focus on the lira’s impact on consumer prices, the bank changed the wording in its statement to highlight the need for a “significant improvement” in the inflation outlook.