Central Bank of Turkey Takes One More Rate Cut for the Road
November 24, 2022
The curious case of monetary policy at the Central Bank of Turkey moved further down the rabbit hole today with a 150-basis point additional drop in the policy rate to 9.0%. That’s ten percentage points below the 19% level that prevailed from March 2021 until September 2o21. This easing has been juxtaposed against accelerating inflation, which at 85.5% in October was at a 24-year high and infinitely above the central bank target of 5%. Under great pressure, the central bank has done Turkish President Erdogan’s bidding, but a statement released today says that the series of rate cuts will end for now at least: “Considering the increasing risks regarding global demand, the Committee evaluated that the current policy rate is adequate and decided to end the rate cut cycle that started in August.”
Copyright 2022, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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