Turkish Central Bank keeps interest rate unchanged

The Monetary Policy Committee of Turkish Central Bank, or CBOT, kept its one-week repo rate same, but cut its daily marginal funding rate by 0.75 points at its meeting on Wednesday.

The committee kept its one-week repo rate at 8.25 percent, which is the policy rate, to support the lira.

Dollar moved downwards to 2.1518 lira from over 2.16 lira, just after the decision came out, the lowest level of two weeks.

"Loan growth continues at reasonable levels in response to the tight monetary policy stance and macro prudential measures. In line with these developments, private final domestic demand follows a modest course." the bank said in a released statement on interest rates.

The adverse impact of exchange rate developments since mid-2013 on annual inflation was gradually tapering off, according to the statement.

OVERNIGHT INTERESTS REDUCED

The Committee reduced Marginal Funding Rate from 12 percent to 11.25 percent and the interest rate on borrowing facilities provided for primary dealers via repo transactions from 11.5 to 10.75. The committee kept the borrowing rate 7.5 percent.

Late liquidity window interest rates on the borrowing side is kept at "0" percent, and lending rate has been reduced from 13.5 percent to 12.75 percent.