Turkey cuts interest rates as inflation rises to 80.2%
Ejes Gist Newspaper reports that the decision to lower the major interest rates by a significant amount to aid in market stabilisation as inflation soars above 80% was announced by Turkey’s central bank on Thursday.
The important one-week repurchase rate was reduced by 100 basis points, from 13% to 12%, by the nation’s monetary regulators.
The Turkish inflation rate increased for the fifteenth straight month in August, reaching 80.2%, its highest level in 24 years.
The transcontinental nation’s interest rates were also reduced by 100 basis points in August and by 500 basis points over time by the end of 2021, which sparked a currency crisis.
The Central Bank of the Republic of Turkey said in a statement that it has “assessed that the updated level of policy is adequate under the current outlook.”
“Leading indicators have been pointing to a slowdown in growth due to the weakening foreign demand since the beginning of July,” the central bank stated.
Leading indications for the third quarter are still pointing to a slowdown in economic growth as a result of falling international demand.
In addition to citing “escalating geopolitical risk” and stating that the market can expect the “disinflation process to begin” as a result of the actions taken, it claimed that the cut was necessary since growth and demand were still slowing.
Investors and economists have long expressed dismay at the policy’s course, but they have now learned that Recep Tayyip Erdogan, the president of Turkey, is exerting political pressure on policymakers by refusing to tighten them.
They clashed Erdogan has consistently attacked interest rates and gone against prevailing economic wisdom by arguing that the best approach to reduce inflation is to lower rates.
That is the latest NewsOnline Today on Turkey
Latest Jobs in Nigeria Now
- Nigerian Navy Recruitment 2022 Exercise for SSCE, OND, NCE Application Guidelines
- INEC Recruitment for Observers
- Nigeria Police Recruitment Portal 2022 Open for Applications
- Nigeria Sovereign Investment Authority (NSIA) Graduate Programme 2022
- INEC Adhoc Staff Recruitment Portal 2022 for 2023 Election | INEC Recruitment Portal login 2022