According to a statement made by the TCMB, the one-week repo auction interest rate was held at 8 percent. According to the announcement, the rate of overnight marginal funding (the upper band of interest rate) is set at 8.50 percent and the overnight borrowing rate (lower band of interest rate) is at 7.25 percent. “Late Liquidity Window Interest Rates: In the framework of the Late Liquidity Window application, Central Bank borrowing rate applied at overnight rates between 16:00 and 17:00 in the Interbank Money Market is 0 percent and lending interest rate is 10 percent. The statement said.
“The recently announced data point to a partial recovery in economic activity in the fourth quarter after slowing in the third quarter of 2008. The positive impact of the increase in demand for European Union countries is expected to continue and the moderate recovery tendency in economic activity is expected to continue with the support of stimulus measures, The implementation of structural reforms can significantly increase the growth potential.
Exchange rate movements and rising oil prices due to the recent rise in global uncertainty pose an upward risk to the inflation outlook. On the other hand, total demand improvements limit these effects.
The Board stated that it would be beneficial to follow developments closely in order to be able to evaluate the net effects of these factors more healthily. Monetary policy decisions in the coming period will depend on the outlook of inflation. Cautious stance on monetary policy will be maintained by closely monitoring inflation expectations, pricing behaviors and other factors affecting inflation.