Central Bank Cuts Interest Rates
Awaited Decision Announced Policy Rate Drops to 36 Percent
The Central Bank of the Republic of Turkey (CBRT) cut its policy rate by 100 basis points to 36 percent.
With the decision, the overnight lending interest rate was reduced from 40 percent to 39 percent, while the borrowing interest rate was lowered from 35.5 percent to 34.5 percent.
The Central Bank announced that the tight monetary policy stance will be maintained until price stability is achieved.
It was stated that the size and timing of interest rate steps will be evaluated on a meeting-by-meeting basis and with a prudent approach according to the inflation outlook, and that monetary policy could be tightened again in the event of a significant and permanent deterioration in the inflation outlook.
The Central Bank also noted that decisions will continue to be taken within a predictable, data-driven, and transparent framework. It was reported that the Monetary Policy Committee meeting summary will be published within five business days.
