HomeEconomyTurkish central bank hikes key policy rate by 500 bps to 50%

Turkish central bank hikes key policy rate by 500 bps to 50%

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Turkish central financial institution raised Thursday its key coverage charge, the one-week repo public sale charge by 500 foundation factors, from 45% to 50%, shocking markets with a hefty hike, in a extremely anticipated determination forward of native ballots later this month.

“The Monetary Policy Committee (MPC) has decided to raise the policy rate (the one-week repo auction rate) from 45% to 50%. The Committee has also decided to adjust the monetary policy operational framework by setting the Central Bank overnight borrowing and lending rates 300 basis points below and above the one-week repo auction rate, respectively,” the financial institution mentioned in an announcement.

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