Turkish Central Bank Raises Rates by 50 basis points

Turkey’s central bank raised its benchmark interest rate by 50 basis points on Thursday, the first increase in nearly three years, as a surging U.S. dollar and domestic security worries batter the lira currency and stoke inflation fears.

Defying President Tayyip Erdogan’s repeated calls for cheaper credit, the bank increased the one-week repo rate to 8 percent. It also lifted it overnight lending rate to 8.5 percent, from 8.25 percent.



Twelve out of 19 economists polled by Reuters had expected an increase of 25 basis points in the repo rate, although the bank was widely expected to stay put on the overnight lending rate. It marks the first policy tightening since January 2014.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza