Larger than expected rate cut raises pressure on Turkish lira
Turkey’s central bank surprised market watchers Wednesday with a significant interest rate cut to bolster the economy amid the coronavirus pandemic, though analysts say the move poses inflationary risks.
ISTANBUL — Surprising market analysts, Turkey’s central bank lowered interest rates more than expected Wednesday in a measure to bolster cheap credit and moderate the economic impacts of the global coronavirus pandemic.
Announcing the eighth interest rate cut in less than a year, the Monetary Policy Committee led by Turkey's central bank governor Murat Uysal reduced its one-week repo rate by 100bps to 8.75%, double the cut predicted by economists in a Bloomberg poll.
