Turkish National Bank to Increase Key Rate

People ♦ Published: August 20, 2013; 16:52 ♦ (Vindobona)

In the fight against the downgrade of the Turkish Lira, the Central Bank of the Republic of Turkey (CBRT) has increased the key rate unexpectedly.

Turkish National Bank to Increase Key Rate / Picture: © Vindobona.org

In the fight against a substantial decline of the country’s currency, the Turkish National Bank has increased the key rate for the second consecutive month. Banks now have to pay interest rates of 7.75 percent for overnight credits which are 0.5 percentage points higher than before, as announced by the central bank on Tuesday. The market has not expected such a high rate hike. At the…