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Central Banks

Turkey Shocks With Another Rate Cut Despite Raging Inflation

  • Central bank lowers benchmark in surprise for most economists
  • Inflation is at 24-year-high and lira trades near record lows
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Turkey’s central bank delivered another shock cut to interest rates, despite inflation running at a 24-year high and with the lira trading at a record low. 

The Monetary Policy Committee led by Governor Sahap Kavcioglu lowered the benchmark to 12% from 13% on Thursday, surprising most economists surveyed by Bloomberg. The lira extended declines after the announcement and was trading 0.2% weaker against the dollar as of 3:02 p.m. in Istanbul.