Tuesday, February 15, 2011

Turkish Central Bank Holds Rate at 6.25%

The Central Bank of the Republic of Turkey held its 1-week repurchase (repo) interest rate at 6.25%, and kept the overnight borrowing and lending rates at 1.5% and 9%. The move sees a pause in the Turkish Central Bank's non-conventional strategy of dropping rates to try and weaken the Lira (Turkey's official currency) and deter inflows of 'hot money'. Turkey recorded inflation of 4.9% in January 2011 vs 6.4% in the previous month.



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