Turkey’s Latest Rate Cut Comes With Caveat Despite Stronger Lira

Turkey delivered a ninth straight interest-rate cut in less than a year, acting with more restraint as the central bank looks to strike a balance between stimulating the economy and shielding a currency still trading near an all-time low.

The Monetary Policy Committee, led by Governor Murat Uysal, reduced its benchmark on Thursday to 8.25% from 8.75%, in line with the forecasts of most economists in a Bloomberg survey. The lira erased losses against the dollar after the announcement.