The Central Bank raised its overnight lending rate to 46 percent.

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

“The Committee has convened to evaluate the developments in financial markets. Measures supportive of a tight monetary stance have been taken after assessing the risks these developments might pose for the inflation outlook. In line with this, the Committee has decided to raise the Central Bank’s overnight lending rate to 46 percent. The policy rate of the one-week repo auction has been held steady at 42.5 percent, while the Central Bank’s overnight borrowing rate remains at 41 percent. Additionally, measures have been taken to limit the volatility in TL and foreign exchange liquidity. If deemed necessary to maintain the efficient functioning of financial markets, further measures will be taken. In case of a notable and lasting deterioration in inflation, the monetary policy stance will be tightened.”