{"id":35596,"date":"2013-01-22T08:05:30","date_gmt":"2013-01-22T13:05:30","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=35596"},"modified":"2013-01-22T08:05:30","modified_gmt":"2013-01-22T13:05:30","slug":"turkey-shift-rate-corridor-down-but-holds-benchmark-rate","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/01\/22\/turkey-shift-rate-corridor-down-but-holds-benchmark-rate\/","title":{"rendered":"Turkey shift rate corridor down, but holds benchmark rate"},"content":{"rendered":"

By www.CentralBankNews.info<\/u><\/a>     Turkey’s central bank cut its overnight lending and borrowing rates by 25 basis points but kept its benchmark one-week repo rate steady at 5.50 percent, moves that were expected by markets, and said this would give it flexibility in light of ongoing uncertainties in the global economy.
    The move by the Central Bank of the Republic of Turkey continues last year’s policy of adjusting its interest rate corridor, which it can vary daily to control exchange rates and capital flows.
   The overnight lending rate, which forms the ceiling of the corridor, was cut to 8.75 percent from 9.0 and the borrowing rate, which forms the bottom, was cut to 4.75 percent from 5.0 percent.
    Last year the central bank kept the benchmark repo rate steady until the last meeting of the year in December, when it cut it by 25 basis points, the first change in the repo rate since August 2011.
    A drop in inflation paved the way for the central bank to trim its overnight rates with inflation hitting a year low of 6.16 percent in December, evidence that inflation is trending downward, the central bank said. At the end of 2011, inflation hit 10.45 percent.
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    However, the central bank has said that it expects inflation to remain above its 5.0 percent target for some time due to higher administered prices.
    Turkey’s Gross Domestic Product expanded by only 0.2 percent in the third quarter from the second for annual growth of 1.6 percent, the lowest quarterly growth rate since third quarter 2009.
    For 2013 the central bank is expecting growth of 4 percent or above.<\/p>\n

    www.CentralBankNews.info<\/a><\/p>\n

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The Turkish economy recorded spectacular expansion in 2010 and 2011, with 8.9 and 8.5 percent growth, to rank among the world’s fastest-growing economies.
But its expansion started slowing down in late 2011, with a growth rate of 5.2 percent — which was painted as a healthy easing of business activity.
The Turkish economy posted markedly slower growth of 1.6 percent in the third quarter of 2012 from the same period a year earlier, official statistics revealed early this month.
The third quarter official result pulled down nine-month growth in Turkish gross domestic product to 2.6 percent, which was well below the official forecast of 3.2 percent.
Government forecasts expect 4 percent yearly growth in 2013 and 5 percent each in 2014 and 2015.<\/div>\n<\/div>\n
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Turkey Central Bank Unveils New Tool to Limit Bank Debt Risk<\/h1>\n<\/div>\n
By David Neylan<\/span> – Dec 25, 2012 7:41 AM MT<\/span><\/cite><\/div>\n<\/div>\n
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