(Bloomberg) — Turkey’s central bank will raise the upper bound of its interest-rate corridor when it meets on Thursday while keeping benchmark borrowing costs on hold as its reserves and the lira remain under pressure, according to Goldman Sachs Group Inc.

The average cost of cash provided by the central bank was already at 10.39% on Friday, rising from as low as 7.34% in mid-July, as the regulator started to provide funding through the late liquidity window at its highest rate.

That’s one of several signs that it “does not have any room to tighten further inside the current interest rate corridor,” Goldman economists led by Kevin Daly said in a report to clients. The Monetary Policy Committee will likely raise the late liquidity lending rate to 12% from 11.25% on Thursday, they said.



a screenshot of a cell phone: Turkey's weighted average cost of funding nears upper bound of rate corridor


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Turkey’s weighted average cost of funding nears upper bound of rate corridor

The central

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