World Economy

Turkey CB Cuts Lending Rate

Turkey CB Cuts Lending RateTurkey CB Cuts Lending Rate

The Central Bank of the Republic of Turkey decreased Tuesday the overnight lending rate (the marginal funding rate), which is the upper band of interest rate corridor, by 50 base points to 9%, while leaving the policy rate (one-week repurchase agreement rate) and the lower band of the corridor (borrowing rate) unchanged at 7.50% and 7.25%, respectively, Anadolu Agency reported. The move was in line with the expectations of the markets. Thereby, the CBRT lowered the upper band 2.25% in total over the past five months. In late liquidity window interest rates, the borrowing rate has been kept at 0%, and lending rate reduced from 11% to 10.50%. “The favorable developments, in terms of trade and moderate course of consumer loans, contribute to the improvement in the current account balance,” the bank said in a statement. The bank added that implementation of the structural reforms in the country would contribute to potential growth significantly.