April 16 (SeeNews) - Turkey's central bank said on Tuesday it reduced its one-week repo policy rate to 5.0% from 5.5% to avoid risks to its financial stability.
"Recently, there is a re-acceleration in capital inflows and credit growth hovers above the reference rate. The Committee indicated that, in order to balance the risks on financial stability, the proper policy would be to keep interest rates low while increasing foreign currency reserves via macro prudential measures", the bank said in a statement after ts monetary policy committee meeting.
The central bank also cut the borrowing rate to 4.0% from 4.5% and the lending rate to 7.0% from 7.5% and decided to increase the reserve option coefficients.