Turkey Gets a Big Central Bank Interest Rate Reduction

July 25, 2019

Turkey’s Monetary Policy Committee slashed its one-week repo rate by 425 basis points to 19.75%. That’s a bigger cut than analysts were anticipating but does not completely reverse the final tightening move last September, which was an increase to 24.0% from 17.75%. A statement released by the Central Bank of the Republic of Turkey observes continuing improvement in Turkey’s inflation outlook, characterizes its stance even after today’s move as disinflationary, and warns about rising protectionism and uncertainty regarding global economic policies.

Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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