MPC: Back to Square One

TURKEY - Report 19 Jan 2016 by Murat Ucer

As expected, the Bank has left all interest rates unchanged today (Graph 1), most likely because of heightened volatility in global markets. As we had noted earlier, like in our last Tracker, regardless of what is meant by “simplification”, i.e. whether it is a cut of the O/N lending rate or the hike of the weekly repo (and O/N borrowing) rate, no action was the most likely outcome because of the tight relation the Bank had established between simplification on the one hand, and reduced volatility on the other.

Now read on...

Register to sample a report