Turkish C.Bank keeps overnight borrowing interest rate same at 1.5 pc

Turkish Central Bank kept the overnight borrowing interest rate same at 1.5 percent.

Turkish C.Bank keeps overnight borrowing interest rate same at 1.5 pc

Turkish Central Bank on Thursday kept the overnight borrowing interest rate same at 1.5 percent.

Also, the bank's Monetary Policy Board kept the lending interest rate same at 9 percent.

As part of Central Bank's efforts to reduce inflow of hot money, one-week repo auction interest rate was also reduced to 6.25 from 6.5 percent.

Releasing a statement after its Monetary Policy Board meeting, Central Bank said last December's measures' tightening effect over loan supply would be clearly seen in the upcoming days.

"Additional measures aiming at restricting credit expansion, which will be taken until the next board meeting, will provide monetary policy with more freedom of movement," the bank said.

The statement also noted that economic activities continued to recover thanks to the strong increase in demands, however, capacity utilization rate in the manufacturing industry proceeded below pre-crisis levels due to weak external demand.

The bank noted that employment conditions continued to improve, but unemployment figures were still high.

Estimating a significant decline in annual inflation in January, the statement also said that inflation rates were expected to proceed below the 2011 target of 5.5. percent in the first quarter, fluctuate starting from the second quarter and reach target levels by the end of the year.


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Last Mod: 20 Ocak 2011, 15:55
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