The Central Bank held a Turkish Lira deposit purchase auction for the first time since 2006. The first auction amount was 80 billion liras. Maximum interest rate was 42.40 percent.
After raising the policy rate by 2.5 percentage points to 42.5 percent yesterday, the Central Bank opened a TL deposit purchase auction today for the first time in 17 years. With yesterday’s rate decision the bank had announced it would be launching TL deposit auctions to sterilize excess TL liquidity in the system.
While 193 billion 853 million TL was bid in the auction, the winning amount was 79 billion 999.8 million TL. The minimum and maximum interest rates were 41.50 percent and 42.40 percent, respectively, while the average interest rate was 42.18 percent.
In yesterday’s policy text, the Central Bank stated that ‘quantitative tightening will continue by increasing the diversity of sterilization tools used to support the monetary tightening process as well as interest rate decisions’.