In the statement made by the CBRT, it was announced that the borrowing limits of the banks in the interbank money market under the CBRT were reset, effective as of November 3. The CBRT also announced that the overnight repo transactions carried out by quotation method against TRY sukuks within the scope of open market operations were stopped. In the statement, "In line with the price stability and financial stability targets, all tools required within the framework of monetary policy and liquidity management will continue to be used decisively." was said.
We expect the Central Bank's new tightening move to lead banks to more traditional repo auctions and the late liquidity window, which is still 14.75%. The cost of banks' access to TRY liquidity will increase further, thus the weighted average funding cost will continue to rise. The Central Bank will hold its next meeting on November 19th.
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Hibya Haber Ajansı