Turkish Central Bank

The Turkish Central Bank on Nov. 18 cut its benchmark one-week repo rate by 100 basis points from 16 percent to 15 percent in line with market expectations.

At its 11th Monetary Policy Committee meeting this year, the bank said recent increases in inflation had been driven by supply-side factors such as rising food and import prices, especially in energy, and supply constraints.

Turkey's external assets stood at $301.4 billion at the end of September, marking an increase of 17.9% from the end of 2020, according to data released by the Turkish Central Bank said on Nov. 18.

Liabilities against non-residents dropped 9.1% to $587 billion.

According to a Reuters poll, the Turkish central bank is expected to cut its key interest rate to 15% from 16% this week

A growth model would not be sustainable if not based on efficiency development, Treasury and Finance Minister Lütfi Elvan said in a parliament commission meeting on Nov. 12.

Turkey's current account balance posted a surplus of $1.65 billion in September, bringing the 12-month rolling deficit to $18.4 billion, the Turkish Central Bank revealed on Nov. 11.

In September 2020, the current account balance posted a $2.3 billion deficit.

The Turkish Central Bank raised reserve requirement ratios for foreign currency and precious metal deposit accounts on Nov. 8.

Announcing the move in the Official Gazette, the bank increased the ratio by 200 basis points for all such accounts.

Turkish Central Bank Governor Şahap Kavcıoğlu on Oct. 27 underlined the importance of turning the current account deficit to the positive territory by ramping up credits to exporters.

The capacity utilization rate (CUR) of Turkey's manufacturing industry decreased month-on-month in October, official data showed on Oct. 25. 

After a four-month upward trend, the rate dropped slightly by 0.1 percentage points to 78% this month, compared to September, according to a Turkish Central Bank survey.

The Turkish Central Bank on Oct. 21 lowered its one-week repo rate by 200 basis points, well above market expectation.

The policy rate- also known as the one-week repo rate- decreased to 16% from 18%, the bank said in a statement following its 10th Monetary Policy Committee (MPC) meeting this year.

TUSIAD President Simone Kaslowski. Photo: TUSIAD

"The independence of regulatory and supervisory institutions, the Central Bank in particular, should be unquestionable," Tuncay Ozilhan, president of the Advisory Council of TUSIAD said at a TUSIAD event.