Thursday, June 23, 2011

Turkish Central Bank Holds Interest Rate at 6.25%

The Monetary Policy Committee of the Central Bank of the Republic of Turkey held its 1-week repo rate steady at 6.25%.  The Bank also held the overnight borrowing and lending rates unchanged at 1.50% and 9.00% respectively.  The Bank said: "Overall, in order to contain the risks towards price stability and financial stability, the Committee has decided to monitor the tightening impact of the existing policy mix and take additional measures along the same lines, if needed,"

The central bank also held the interest rate unchanged during its May meeting this year. Turkey recorded a surge in annual consumer price inflation of 7.2% in May, up from 4.26% in April, and 3.99% in March, and above the Bank's full year inflation target of 5.5%.


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