Turkey Central Bank Holds Rate, Lifts Reserve Requirements

The Central Bank of the Republic of Turkey held its policy interest rate at 6.25% for a third month but raised the required reserve ratios, in the first meeting for new central bank Governor Erdem Basci.  The ratio on short term lira deposits was increased 100 basis points to 16% from 15%, and the ratio on foreign currency deposits was also increased 100 basis points to 12% from 11%.  Turkey reported inflation of 3.99% in March, compared to 4.16% in February, with the Bank's inflation target at 5.5%; the Bank expects inflation to rise above the target by the end of the year.

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