» Turkey’s Monetary Tightening: Will Other Emerging Markets Follow? Decision Economics

Turkey’s Monetary Tightening: Will Other Emerging Markets Follow?

Posted January 29, 2014 by rvillareal

The Turkish Central Bank surprised skeptical markets and pushed policy interest rates sharply higher last night.  The bank made the following adjustments: it increased the overnight lending rate from 7.75% to 12% (425 basis points), the overnight borrowing rate from 3.5% to 8% (450 basis points), and the repo rate from 4.5% to 10% (550 basis points)–a very large shift upward of the TCB’s interest rate corridor.

Not yet a Decision Economics member?  Click here to register for a FREE 30 day trial.  

If you are already a member, click here to login.