Central Banks
Turkey Cuts Interest Rates More Than Expected But Says It’ll Remain Cautious on Future Moves
- Turkey central bank reduces base rate to 47.5% from 50%
- Policymakers also narrowed rates corridor in hawkish move
Shoppers in the Grand Bazaar in Istanbul.
Photographer: Nicole Tung/BloombergThis article is for subscribers only.
Turkey lowered interest rates for the first time in almost two years but said it would remain cautious about future cuts, with inflation only just below 50% and nearly 10 times the official target.
The central bank’s Monetary Policy Committee, led by Governor Fatih Karahan, reduced its one-week repo rate by more than markets expected — to 47.5% from 50% — on Thursday after keeping it on hold for eight meetings in a row.