Turkey’s One-Week Repo Rate Cut to 9.75% from 10.75%

March 17, 2020

The Central Bank of Turkey‘s board, which was to have reviewed policy later this week, announced a larger-than-anticipated 100-basis point reduction of its one-week repo rate. Reductions in January and February had been by 75 and 50 basis points, respectively, and at 9.75%, the benchmark has fallen 14.25 percentage points from the high of 24.0% that prevailed from August 2018 to July 2019. Despite a weaker lira, which is trading around a 17-month low and touched 6.4949 per USD earlier today, officials perceive downside inflation risks to be rising due to oil market developments.

Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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