The Turkish Central Bank cuts interest rates to 9% and decides to end the easing cycle

Turkey’s central bank on Thursday cut its key interest rate by 150 basis points to 9 percent as expected. It announced it had decided to end the easing cycle, which began in response to a call by President Recep Tayyip Erdogan to cut rates below 10 percent by the end of the year despite inflation exceeding 85 percent. .

As a result, the lira fell to an all-time low of 18.66 against the dollar, and settled at 18.63 by 1107 GMT.

After Thursday’s move, the total easing in four months is 500 basis points. The central bank indicated that stimulus is necessary in light of the presence of signs of a slowdown in the economy, despite the racing of central banks around the world in the other direction.