Turkey’s Central Bank reduces its policy interest rate from 18 percent to 16 percent

The Central Bank has reduced its policy interest rate from 18 percent to 16 percent. The discount was much higher than expected.The bank had reduced the interest rate by 100 basis points at the meeting on September 23. After the decision, the dollar /TL rose to 9.48 and the euro/TL rose to 11.05.

The bank, which cut interest rates by 100 basis points on September 23 despite inflation approaching 20 percent, also cut rates by 200 basis points today despite a sharp increase in the exchange rate.

Dollar TL rate goes up rapidly

The dollar/TL jumped from 9.28 to 9.48 with the decision of a hard interest rate cut. The level of 11 was exceeded for the first time in Euro/TL and the level of 11.05 was seen.