Economy

Turkey opts for new tightening strategy after signaling pause to hikes

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A picture taken on August 14, 2018 shows the logo of Turkey’s Central Bank at the entrance of its headquarters in Ankara, Turkey.

ADEM ALTAN | AFP | Getty Images

Turkey’s central bank is opting for a different monetary tightening method as it grapples with climbing inflation, after previously signaling that its rate-hiking cycle was over.

The institution sent a directive to lenders, effective Friday, instructing them to put parts of their required lira reserves into blocked accounts.

That’s pushed loan rates up higher and cut the sizes of some banks’ loan limits, with some lenders shrinking their commercial loan limits to 100,000 lira, or $3,100, Reuters reported Thursday.

“Some banks have…



Source cnbc.com

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