Turkish Central Bank Holds Repo Rate at 5.75%

The Central Bank of the Republic of Turkey held its benchmark 1-week repo rate at 5.75%.  The Bank said: "Recent data releases suggest that the rebalancing between the domestic and external demand is ongoing as envisaged. With the credit growth decelerating to more reasonable levels, the desired increase in private  savings has already started to take place. Accordingly, the improvement in the current  account balance is expected to become more significant in the final months of the year."


The Turkish central bank last cut the benchmark rate by 50 basis points when it held an emergency meeting in early August, the bank also cut its benchmark interest rate by 25 basis points to 6.25% in January this year.  The Turkish central bank also adjusted required reserves in late July.  Turkey reported annual consumer price inflation of 7.7% in October, compared to 6.7% in August, 6.3% in July, 6.2% in June, 7.2% in May, 4.26% in April, and 3.99% in March, and above the Bank's full year inflation target of 5.5%.  

The Turkish Lira (TRY) has weakened by about 19 percent against the USD so far this year, and last traded around 1.87 against the US dollar.  Turkey's central bank is scheduled to review monetary policy settings on the 22nd of December.

www.CentralBankNews.info