Interest Rate Cut in Turkey
January 16, 2020
The Central Bank of the Republic of Turkey’s one-week repo rate was cut by 75 basis points to 11.25%. Analysts had been projecting a likely 50-bp cut. Today’s moves follow consecutive cuts of 425 basis points last July, 325 bps at September’s meeting, 250 bps in October and 200 bps last month. Even though the repo rate level now lies below on-year inflation, a released statement claims that current monetary policy is aligned with projected further disinflation. The economy is recovering in spite of tempered external demand. Inflation expectations continue to recede.
Developments in the exchange rate, domestic demand conditions and producer prices have contributed to a mild trend in core inflation indicators. The course of inflation is considered to be broadly in line with the year-end inflation projection.
Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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