The Monetary Policy Committee of Turkey’s Central Bank voted today, Thursday, to cut the lira’s weekly interest rate (Repo) by 100 basis points, from 14 to 13 on an annual basis.
Analysts assumed that the Turkish Central Bank would maintain the existing interest rate, therefore the outcome was surprising.
Despite the Turkish lira’s drop, the Turkish Central Bank has maintained steady interest rates from the beginning of this year, and this cut is the first since the beginning of 2022.
Following the ruling, the US dollar exchange rate climbed by 0. 75 to 18. 0873 liras, according to Bloomberg website statistics. In comparison, at the end of January, the Turkish lira was trading at 13. 5 liras to the dollar.
Turkey’s Central Bank has surprised markets.
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