Central Bank: "Additional measures will be taken if deemed necessary."

The Central Bank of the Republic of Turkey (CBRT) announced that it will take additional measures as necessary to maintain the stability and efficient functioning of financial markets. In the summary of the Monetary Policy Committee's interim meeting held on March 20, it was noted that Turkey's 5-year credit risk premium (CDS) increased by 38 basis points since the last meeting, reaching 296 basis points. Additionally, the one-month volatility of the Turkish lira rose by 10.3 points to 19%, while the twelve-month volatility increased by 4 points to 21.5%. The CBRT emphasized that various financial measures have been implemented to mitigate these volatilities.

After assessing the negative impacts of market fluctuations on inflation expectations, the Monetary Policy Committee decided to adopt tight monetary policy measures. Consequently, the overnight lending interest rate was raised from 44% to 46%. However, the policy rate for one-week repo auctions remained unchanged at 42.5%, while the overnight borrowing rate was held steady at 41%. To further limit market volatility, various measures regarding TL and foreign currency liquidity have been implemented, including the initiation of TL-settled forward foreign exchange sales to balance the currency market.