- Turkey’s central bank cuts benchmark interest rates.
- USD / TRY engulfed in high volatility around 10.70, 8% above the level of a week ago.
The strong depreciation of the Turkish lira these days, with a cumulative fall of more than 8%, did not stop the Central Bank of Turkey (CBRT) in its decision to cut the benchmark interest rate by 100 basis points to 15%, as expected most analysts.
USD / TRY hit 10.98, the new record high and then fell back to 10.50. It is trading at time of writing, around 10.75, still with high volatility.
In the statement, the CBRT said it decided to cut rates after evaluating areas where monetary policy can have an impact, such as commercial loans. The monetary authority stated that it sees the impact of temporary inflation having an influence in the first half of 2022.
“We could ease politics again in December”Said the CBRT. Then the central bank governor claimed that on December could end the rate reduction cycle.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
