Turkish central bank tries to tighten policy without hiking rates
Currency continues to slide as data shows central bank’s FX reserves fell by one-sixth in 12 months
Turkey’s central bank tried to tighten monetary policy today (October 12) without raising its policy rate, as the Turkish lira’s exchange rate again fell sharply.
The Central Bank of the Republic of Turkey raised remuneration rates by 200 basis points on the domestic currency reserves that all banks must hold. The CBRT has spent about one-sixth of its currency reserves attempting to bolster the Turkish lira, but faces considerable political resistance to tightening policy rates. Its six
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