ISTANBUL, March 17 (Reuters) - Turkey’s central bank on Friday pushed the average cost of funding up around 50 basis points from a day earlier, when it tightened policy at its rate-setting meeting, bankers said.
The bank took an unorthodox tightening step on Thursday, hiking the cost of funds from its “late liquidity window” by 75 basis points while leaving conventional policy rates on hold ahead of April’s landmark political referendum.
On Friday, it set the level of funding at 9.25 percent at 5 billion lira. Most of the market’s remaining funding needs will have to be met at 11.75 percent at the “late liquidity window”.
With Friday’s liquidity move, the average cost of funding has risen 300 basis points since late January. (Reporting by Nevzat Devranoglu; Writing by Daren Butler; Editing by David Dolan)