Reported 5 months ago
Turkey's central bank decided to maintain its interest rates and introduced new measures to address excess liquidity and control lending in foreign currencies. The Monetary Policy Committee kept the benchmark rate at 50% and emphasized a tight policy stance until a significant decline in inflation. The central bank also imposed higher reserve requirements for commercial banks and a cap on monthly foreign exchange credit growth to manage liquidity glut concerns. Additionally, the bank raised reserve requirements for FX-protected accounts to facilitate a shift to regular lira deposits. Analysts expect a continued pause in rate hikes with a focus on fiscal adjustments and alternative tightening tools, while inflation data will influence future monetary policy decisions.
Source: YAHOO