The Central Bank raised the overnight lending rate to 46%.

The Central Bank announced that “measures have been taken regarding TL and foreign exchange liquidity to limit volatility in the market.” The Central Bank’s Monetary Policy Committee (MPC) issued a decision in an interim meeting. The overnight lending interest rate was increased to 46%. The statement from the Central Bank read:

“The Monetary Policy Committee (Committee) has convened to evaluate developments in financial markets. Measures supportive of a tight monetary stance have been taken considering the risks that these developments may pose for the inflation outlook. In this context, the Committee has decided to raise the Central Bank’s overnight lending rate to 46%. The policy rate, the one-week repo auction rate, remains at 42.5%, while the Central Bank’s overnight borrowing rate is held steady at 41%. Additionally, measures have been taken to limit volatility in the TL and foreign exchange liquidity. Additional measures will be taken if deemed necessary to maintain the efficient functioning of financial markets. In case of a significant and lasting deterioration in inflation, the monetary policy stance will be tightened.”