Economics
Turkey’s Rate Cut Amid Climbing Inflation Signals More to Come
- Overnight lending rate lowered for sixth consecutive month
- Economists say bank is likely to further ease monetary policy
Turkey Cuts Rate As Inflation Signals Further Moves
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The Turkish central bank’s decision to lower a benchmark rate amid climbing inflation is fueling expectations that regulators will keep cutting.
The bank trimmed its overnight lending rate by 25 basis points to 8.5 percent on Tuesday, the sixth consecutive reduction. The one-week repurchase and overnight borrowing rates were kept at 7.5 percent and 7.25 percent respectively. All of the decisions were in line with economists’ forecasts in a Bloomberg survey. The lira gained.