Turkey’s Central Bank cuts interest rate decision, US dollar TL rate climbs

The Central Bank has announced its highly anticipated interest rate decision. The bank has cut its policy interest rate from 19 percent to 18 percent. After the decision, US dollar / TL rate went up.

The Central Bank (CBRT) announced its interest rate decision, which everyone was eagerly waiting for. After the meeting of the Monetary Policy Board (PPK) held today, the bank announced in a statement that the policy interest rate had been reduced from 19 percent to 18 percent.

The dollar / TL exchange rate jumped from 8.65 to 8.80 after the decision. Euro TL rate saw 10.33.

The majority of economists and financial institutions had expected the interest rate to be kept constant, but there were also those who expected a discount.

With an emphasis on core inflation, the Bank’s statement said, “The Board has evaluated the analysis on the demand factors that monetary policy can affect, core inflation developments and effects caused by supply shocks. Within this framework, it was assessed that there was a need for updating the monetary policy stance and it was decided to make a discount on the policy interest rate,”