Turkey raises overnight lending rate in emergency move
Central bank tries to protect lira after opposition figure’s arrest triggers fall in currency
During an emergency meeting on March 20, the Central Bank of the Republic of Turkey (CBRT) raised its overnight lending rate by 200 basis points to 46% as it attempted to stem a fall in the value of the lira.
The CBRT left its policy rate, the one-week repurchase auction rate, and the overnight borrowing rate unchanged at 42.5% and 41% respectively. The central bank also decided to suspend one-week repo auctions for an unspecified period in order to manage liquidity in the trading of lira.
The
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