ANKARA: Turkey’s central bank said on Saturday that from January it will offer a fixed interest rate on lira required reserves deposited by financial institutions, in a move aimed at boosting lending.
The bank said the remuneration rate – the interest rate it pays on required reserves – for each quarterly period will be fixed at 400 basis points less than the one-week repo auction rate. Before, the rate varied from 300 to 500 basis points less than the average cost of funding, based on the volume of loans.
