The Central Bank has increased the overnight lending rate to 46%

The Central Bank announced that measures have been taken “to limit the volatility in the TL and foreign exchange liquidity.” The Central Bank’s Monetary Policy Committee (MPC) issued an interim meeting decision. The overnight lending rate has been raised to 46%. The statement from the Central Bank reads as follows:

“The Committee has convened to evaluate the developments in financial markets. Supporting measures to maintain a tight monetary stance have been taken after assessing the risks these developments could pose to the inflation outlook. Accordingly, the Committee has decided to raise the Central Bank’s overnight lending rate to 46%. The policy rate for the one-week repo auction has been kept at 42.5%, while the Central Bank’s overnight borrowing rate remains at 41%. Additionally, measures to limit the volatility in TL and foreign exchange liquidity have been implemented. If deemed necessary to sustain the effective functioning of financial markets, further measures will be taken. In case of a significant and lasting deterioration in inflation, the monetary policy stance will be tightened.”