Turkey's Central Bank decreases overnight lending

Baku. 21 June. REPORT.AZ/ The Central Bank of the Republic of Turkey (CBRT) decreased Tuesday the overnight lending rate (the marginal funding rate), which is the upper band of interest rate corridor, by 50 base points to 9 percent, while leaving the policy rate (one-week repurchase agreement rate) and the lower band of the corridor (borrowing rate) unchanged at 7.50 percent and 7.25 percent, respectively. The move was in line with the expectations of the markets, Report informs. 

Thereby, the CBRT lowered the upper band 2.25 percent in total over the past five months. In late liquidity window interest rates (between 4.00 p.m. - 5.00 p.m.), the borrowing rate has been kept at zero percent, and lending rate has been reduced from 11 percent to 10.50 percent.

"The favorable developments, in terms of trade and moderate course of consumer loans, contribute to the improvement in the current account balance," the bank said in a statement. 

"While domestic demand continues to have a positive impact on growth, demand from the European Union economies continues to support exports. Accordingly, economic activity displays a moderate and stable course of growth."

The bank added that implementation of the structural reforms in the country would contribute to potential growth significantly.