Turkey Surprises Markets With Smaller Than Expected Rate Cut

Turkeys’ Central Bank Governor Fatih Karahan

Photographer: Lina Selg/Bloomberg

Turkey’s central bank lowered its main interest rate for the fifth straight month while surprising markets by slowing the pace of cuts from December.

The Monetary Policy Committee lowered its one-week repo rate to 37% from 38% on Thursday, less than anticipated in a Bloomberg survey of 22 economists. All but three had penciled in a 150 basis point cut.