The Turkish Central Bank cuts interest rates to 8.5%

Turkey’s central bank cut interest rates on the lira by 50 basis points from 9% to 8.5% in February, after the devastating earthquake that claimed more than 45,000 lives.

This cut came in line with analysts’ expectations of 8.5%.

Turkey’s central bank cut its key interest rate by 500 basis points last year, in an unconventional easing cycle designed to counter a slowing economy, before holding it steady at 9% in December and January.

Even before the earthquakes, analysts said there could be more easing ahead of presidential and parliamentary elections scheduled for June, when President Recep Tayyip Erdogan is expected to face the biggest political challenge of his two decades in power.