Central Bank hikes gold reserve rate to 20 percent

ANKARA - Anatolia News Agency

The Central Bank increased the amount of lira reserves that banks are allowed to hold in gold from 10 percent to 20 percent, while keeping its interest-rate corridor unchanged.

The increase may result in about a $2.2 billion worth of liquidity injection into markets, if banks use this vehicle in the future.

The Central Bank yesterday left the benchmark one-week repo rate, the floor of the corridor, at 5.75 percent. The maximum rate on overnight loans was also unchanged at 11.5 percent, the bank announced.
Recent data suggests that the balancing process between domestic and foreign demand is continuing as predicted, the bank said, adding that during the first quarter of the year consumption demand has been slowing significantly and that initial data suggests a moderate recovery in demand.