Turkey’s central bank announced on Thursday that it will cut its benchmark interest rate for the second time, contrary to expectations, in light of the reduced risks of an economic recession.
The Central Bank of Turkey announced a 100 basis point cut in the interest rate on one-week repos to 12 percent.
This is stated in a statement following a meeting of the Central Bank Committee on Monetary Policy, headed by the bank’s Governor Shihab Kavuoglu.
The statement said that the world’s central banks point to the continued rise in inflation due to rising energy prices.
He indicated that the Central Bank of Turkey expects that the process of easing inflation will begin with the restoration of an atmosphere of global peace, along with decisive steps taken to ensure sustainable price stability and financial stability.
He added that the committee had decided to cut the interest rate from 13 percent to 12 percent and that the updated monetary policy rate was sufficient in light of current expectations.
He stressed that the Central Bank will firmly continue to use all the tools available to it until there are strong signs of a permanent reduction in inflation and the target of 5 percent in the medium term is reached, in line with the main goal of price stability.
It is noteworthy that the Turkish Central Bank lowered the interest rate last month from 14 to 13 percent, after fixing it for 7 months.
Source: Anatolia
