Central Bank of Turkey Reduces 1-Week Repo rate to 8.75% from 9.75%

April 22, 2020

The Central Bank of Turkey’s one-week repo rate was cut twice as much as anticipated at today’s scheduled review of monetary policy. From 12% at the start of 2020, the rate has been lowered in each month and now becomes 8.75% after today’s full percentage point cut. A released statement observes that the global and Turkish growth outlooks have weakened substantially and depicts mild and low inflation despite lira depreciation. Aside from lending support to economic growth, a looser monetary policy is needed to ensure financial market functionality. That said, the statement pledges to take a cautionary approach to easing in order to safeguard against a rise in inflation.

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


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