Following President Recep Tayyip Erdogan’s proposal for a drop in the interest rate below ten percent by the end of the year, the Turkish Central Bank reduced the basic interest rate by 150 basis points, or more, to 10.5% on Thursday. This was more than predicted.
Re-purchase prices were decreased for a week as annual inflation rose to 83 percent in September, while central banks around the world raced to tighten monetary policy.
After the announcement, the Turkish lira hit its all-time low against the dollar at 18,6150. The value of the lira fell by 29 percent this year and by 44 percent in 2021.
In a Reuters poll, 13 out of 20 experts predicted that the bank would cut interest rates to 11%.
Turkish Central Bank lowers interest rates by 150 basis points.
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