Central Bank Suspends 1 Week of rePO Tenders
The Central Bank of Turkey announced its decision to take a one-week break in the Turkish Lira Liquidity Management, considering the developments in the financial markets. This decision was made in response to the risks that these developments may pose in terms of inflation.
During a meeting chaired by Yaşar Fatih Karahan, the Board decided to increase the lending interest rate to 46 percent in the night term. The tender interest rate of one week remains at 42.5 percent, while the Central Bank’s borrowing interest rate is fixed at 41 percent in the night term.
Measures have also been implemented to limit volatility in the market for TL and foreign exchange liquidity. The Central Bank stated that if necessary, further actions will be taken to maintain the effective functioning of financial markets and tighten the monetary policy stance in case of a significant and permanent deterioration in inflation.
The Board emphasized that its decisions will be made within a predictable, data-oriented, and transparent framework. Details of the Monetary Policy Board meeting will be published within five working days.
