CBRT cuts reserve requirements, but stresses tight stance
Liquidity tools are more about transmission than policy stance, says Murat Çetinkaya
The Central Bank of the Republic of Turkey (CBRT) cut reserve requirements on February 16, but governor Murat Çetinkaya stressed such moves should not be interpreted as a relaxation of monetary policy.
In a short statement, the central bank said it had cut the reserve requirement ratio by 100 basis points for deposits and “participation funds” with maturities up to a year, and for other liabilities with maturities up to three years. All other requirements were reduced by 50bp.
Muhammet Mercan
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