Turkish CB revises policy interest rate down to 5.75 pct

The bank also changed its overnight interest rates, as it increased overnight borrowing rate from the previous 1.5 percent to 5 percent.

Turkish CB revises policy interest rate down to 5.75 pct

Turkish Central Bank revised down its policy interest rate from 6.25 percent to 5.75 percent on Thursday, saying that the reduction aimed at minimizing the risk of a slowdown in domestic economic activity.

In addition to policy rate, Central Bank also changed its overnight interest rates, as it increased overnight borrowing rate from the previous 1.5 percent to 5 percent and kept lending rate unchanged at 9 percent, said a statement released after an interim meeting of the bank's Monetary Policy Committee on Thursday.

The Committee, which assessed the rising concerns over public debt problem and global growth outlook in some European countries during today's gathering, said in its statement that the interest rate on borrowing facilities provided for primary dealers via repo transactions was also kept constant at 8 percent.

"In order to limit the potential downside volatility in the short-term interest rates, the Committee has decided to narrow the interest rate corridor by significantly increasing the overnight borrowing rate," the statement said.

"Moreover, the Committee has delivered a measured policy rate cut to reduce the risk of a domestic recession that may be caused by the heightened problems in the global economy," the statement added.

Central Bank also said that the Monetary Policy Committee had agreed to closely monitor the developments, and if necessary, take measures to provide foreign exchange liquidity via appropriate methods and instruments.

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Last Mod: 04 Ağustos 2011, 13:30
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