Turkey’s Post-Coup Chaos Slows Pace of Interest Rate Cuts
- Analysts revised forecasts after Friday’s failed coup attempt
- Central bank reduces overnight lending rate by 25 basis points
Turkey's Failed Coup Creates Lira Risk, Says Toprak
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Turkey’s central bank slowed the pace of interest rate cuts on Tuesday after the failed coup attempt triggered a sell-off in the currency and sovereign debt.
The bank lowered its overnight lending rate by 25 basis points, short of the 50-basis-point cuts it delivered during the past three meetings, but matching the median estimate in a Bloomberg survey. The one-week repurchase and overnight borrowing rates were kept at 7.5 percent and 7.25 percent respectively, the bank said in a statement.