Turkey’s Fifth Interest Rate Cut of 2020

May 21, 2020

The Central Bank of Turkey‘s one-week repo rate was cut 50 basis points further to 8.25% today in a move that had been expected and that brings the total decline so far this year to 375 basis points. The new rate level of 8.25% compares to an end-2019 level of 12.0%. Officials released a statement that points to a bottoming out process in Turkey’s pandemic-caused recession. Inflation may rise in the near term but is expected to settle back. Inflation will have a major impact on future policy moves as the Monetary Policy Committee proceeds with caution.

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