raise 12%

Turkish Central Bank raises interest rates to 12%

With growing pressure from investors to intervene in the fall of Turkish Lira, Erdem Basci of Central Bank of Turkey raised overnight lending rates to 12% from 7.5% in an emergency meeting held on 28 January 2014. The size of the hike came as a shock to most analysts, who expected a rise but not to this magnitude. On the other hand, CBRT's decision to oppose Prime Minister Erdogan's suggestion not to increase interest rates was perceived as bold and positive indicating monetary policy independence. Erdem Basci wowed to rescue Turkish Lira and ensure that inflationary pressures are kept under control. Immediately after the announcement Turkish Lira recorded a sharp rise against USD on 29 January.

interest rates , raise 12% , turkish central bank turkish lira
2014-January-29