Turkey Central Bank Raises Top Rate After Emergency MeetingBy
Central bank hikes late liquidity window rate to 16.5 percent
Decision comes after lira fell to record lows against dollar
Turkey’s central bank raised its late liquidity window rate by 300 basis points to 16.5 percent on Wednesday, it said in a statement on its website after an emergency meeting of its monetary policy committee.
The bank said it held all other key interest rates unchanged.
The bank said the rate increase was a “powerful monetary tightening" and vowed to continue using all instruments at its disposal should they be needed. Tight policy will be maintained until there’s a marked improvement in inflation outlook, the statement said.
The lira reversed earlier losses of as much as 5.5 percent and was trading little changed at 4.6700 per dollar at 7:26 p.m. in Istanbul.