© Reuters.
Investing.com – The Central Bank announced a 150 basis point interest rate cut to 9.00%.
With the Republic of Turkey announcing its interest rate decision, the one-week repo rate, which was reduced to 10.50% at the previous meeting, was reduced by another 150 basis points to 9%.
The Turkish lira pair is now trading at 18.63, up from 18.61 before the Turkish Central Bank’s decision. While the lira pair hit 19.38, up 0.2%, and the Turkish lira was up more than 1%, surpassing its price of 1,052 Turkish lira.
The Turkish Central Bank said in its statement, “The price reduction cycle is over.” As a sign of stability the Turkish Central Committee to stop the policy of cutting interest rates.
“The Board has assessed that the current policy rate is at an appropriate level, taking into account the growing risks regarding global demand, and has decided to end the cycle of rate cuts that began in August.”
Let’s go back to odd numbers
The interest rate announced by the central bank has been in the double digits for more than two years. The rate, which rose from 8.25% to 10.25% in September 2020, returned to single digits after a 26-month hiatus with today’s decision.
The Turkish Central Bank will hold its last Monetary Policy Committee meeting of the year on December 22.
The BIST 100 rose 0.7% to 4,887 points.
