Economics
New Turkey Central Banker Pivots With Biggest Rate Cut on Record
- Central bank reduces key rate to 19.75%, more than forecast
- Erdogan wants lower rates as economy sputters, inflation falls
Source: Turkiye Cumhuriyet Merkez Bankası
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Turkey’s new central banker delivered the biggest interest-rate cut in at least 17 years, putting President Recep Tayyip Erdogan’s unconventional policy goals into practice less than three weeks after getting the job.
The monetary policy makers led by Murat Uysal slashed the benchmark borrowing rate by 425 basis points to 19.75% on Thursday, exceeding all but one of the 34 analyst forecasts. It was the first cut since 2016 and the biggest since a shift to inflation targeting in 2002.