Turkey’s Central Bank announces interest rate decision

The Central Bank has cut the interest rate by another 150 basis points to 10.5 percent. The President had ordered the interest rate to be reduced to single digits by the end of the year despite official inflation exceeding 83 percent.

The Central Bank’s (CBRT) Monetary Policy Committee (PPK) lowered the policy interest rate by another 150 basis points to 10.5 percent.

In the PPK statement made after the decision it said, “The Board decided to reduce the policy interest rate by 150 basis points. The Board has taken the termination of the interest rate reduction cycle on the agenda after a similar step is taken at the following meeting.” Thus, CBRT gave a message to push on the brakes on interest rates after taking a decision of reduction at the November meeting.