ANKARA - Turkish Central Bank Monetary Policy Committee raised short term interest rates by 2.25 points after it discussed recent developments in money markets in a meeting on Sunday.
The monetary policy committee increased the overnight borrowing interest rate from 15 to 17.25 percent and the lending interest rate from 18 to 20.25 percent.
Releasing a statement, Central Bank noted that it would not allow market volatility to harm the medium-term downtrend in inflation.
Stating that the bank would hold auctions to decrease liquidity of excessive Turkish lira in overnight monetary market, it noted that the committee reviewed interest rates to maintain the medium-term downtrend in inflation.
``The committee expressed full support for the central bank administration`s effective intervention to provide foreign exchange liquidity,`` the statement said.