Turkey’s Central Bank lowers interest rates
Effective February 9, 2005,
Turkey's Central Bank (TCMB) lowered short-term interest rates by half a point.
An announcement from the TCMB confirms reductions in both the borrowing rate, from 20.50% to 19.50%, and the overnight borrowing rate, from 16.50% to 15.50%.
The move had been widely anticipated because of the generally good news regarding
Turkey's inflation figures.
Within the application of Late Liquidity Window framework, the overnight lending interest rate of the Interbank Money Market between 16:00-16:30 was lowered from 25% to 24.50%, while the borrowing interest rates remained unchanged at 5%. Also, overnight and one week borrowing interest rates were reduced from 19% to 18.50% under the open market operations framework by way of repurchasing agreements with market maker banks.