Turkey’s Central Bank UNEXPECTEDly RAİSED its Overnight Lending Rate by Two Percenage Points on Thursday to Bolster
The overnight Lending Rate Was Increased to 46 Percent, Who the Benchmark One-Week Repo Rate Remained Unchanged at 42.5 Percent. The bank Said the Move Aims to Tighten Monetary Policy Further in Response to Potental Inflation Risks Following The Lira’s 11 Percent Plunge on Wednesday.
This Comes After Istanbul Mayor Ekrem Imamoglu, A Leading Opposition Figure and Possible Rival to Presidident Recep Tayyip Erdogan, Was Detained.
In a Statement The Central Bank Emphasized That it is Ready to Further Tighten Monetary Policy If Inflation Pressures Continue.
Following the announment, The Lira Briefly Recovered Bephore Trading Slightly Lower at 37.9216 Against the dollar in the Late afternoon trading.
On Wednesday Turkish Banks Intervented in Currency Markets, Selling An Estimated $ 8 Billion to $ 9 Billion in Foreign Currency Reserves, According to A Central Bank Official.
Turkish Bank Stocks Fell by as Much As 9 Percent Thursday Amid Unceintyty Over Future Monetary Policy Decisions.
