Mubasher: Turkey’s central bank on Thursday delivered another cut to its benchmark interest rate, which came slightly above expectations.
The Monetary Policy Committee (MPC) decided to lower the one-week repo lending rate by 325 basis points (bps) to 16.50%, the Central Bank of the Republic of Turkey (CBRT) said on its website.
Last July, the CBRT cut its policy rate to 19.75%, from 24% in its first policy move since September last year.
In response, the Turkish lira (TRY) rose against the US dollar by 1.20%.
A retreating inflation this year paved the way for easing monetary policy.
Inflation declined more than anticipated to 15.01% last August, and it is likely to resume its downward trend.
By 11:40 am GMT, the USD/TRY pair dropped by 1.05% to TRY 5.6890.