September 22, 2022 (MLN): Turkey’s central bank monetary policy makers cuts interest rate by 100bps, bringing the key one-week repo rate from 13% to 12% as country struggles under inflation exceeding 80%, CNBC reported today.
Due to political pressure from Turkish President Recep Tayyip Erdogan who insisted to lower interest rate because lowering rate are the way to bring down inflation. A statement from the central bank said it has “assessed that the updated level of policy is adequate under the current outlook”
Turkey’s inflation rate in the country surging beyond 80% it is increasing for the 15th consecutive month and the highest level in 24 years. Also, turkey’s currency Lira has lost more than 27% of its value to the dollar year to date and 80% in the last five years.
After the decision by bank’s rate announcement the currency was down a quarter of a percentage point, trading at a record low of 18.376 to the dollar.