MNI BRIEF:CBRT Ups O/Night Lending Rate, Policy Rate Unchanged
MNI (LONDON) - The Central Bank of Turkey raised its overnight lending rate from 44% to 46% on, but kept the policy rate unchanged at 42.5% and the overnight borrowing rate at 41.00%, following an interim meeting on Thursday following Wednesday's big lira selloff.
“The Monetary Policy Committee (the Committee) convened to exchange views on the recent financial market developments. Assessing the risks that these developments may pose to the inflation outlook, measures have been taken to support the tight monetary stance,” a CBRT statement said.
“Furthermore, TL and FX liquidity measures have been introduced to limit market volatility. In order to maintain the sound functioning of financial markets, additional actions will be taken if deemed necessary.”
The CBRT added that the monetary policy stance "will be tightened in case a significant and persistent deterioration in inflation is foreseen - a hawkish revision to the phrase used in statements accompanying recent decisions, according to which "Monetary policy tools will be used effectively in case a significant and persistent deterioration in inflation is foreseen."