Turkey holds rates but raises reserve ratios
Move appears to be attempt to stem fall in currency despite president’s opposition to rate hikes
Turkey’s central bank held policy rates at their previous level today (August 20), despite growing pressure on the country’s currency, but tightened banks’ reserve requirements.
The monetary policy committee kept its policy rate at 8.25%, while raising foreign exchange requirements for “banks fulfilling real credit growth conditions”, it announced. The seven-member MPC is led by governor Murat Uysal.
The central bank said that the decision will remove approximately $11 billion from the market
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