Turkish central bank publishes roadmap for policy

ANKARA

The Turkish central bank on Tuesday published "A roadmap during the normalization of global monetary policies," a document detailing measures the bank will take to make its decisions more effective in a volatile international environment. 

The interest rate corridor, or the band between the higher overnight and marginal rates (currently at 10.25 percent and 10.75 percent respectively) and the lower one week repo rate of 7.50 percent will be made "more symmetric." The width of the corridor will also be narrowed, the bank said.  

The flexibility of foreign exchange selling auctions will be increased to reduce exchange rate volatility.

The remuneration rate of the dollar-denominated required reserves, reserve options and free reserves held at the central bank will be held close to the upper end of the Fed funds target rate range - meaning that a higher interest rate will be paid on dollar reserves belonging to banks. 

The roadmap was published after the announcement on Tuesday that interest rates would be held at current levels.