Turkey’s Central Bank cuts main rate to 12 percent

Uncategorized Faizah Kamal 12-Dec-2019

Turkey’s Central Bank has cut its main policy rate (one-week repo rate) by 200 basis points – larger than market expectations – from 14 percent to 12 percent.

According to a poll conducted by Anadolu Agency, economists had estimated a 150 basis point cut at the bank’s Monetary Policy Committee (MPC) meeting on Dec. 12.

Inflation outlook continued to improve while inflation expectations displayed a wide-spread decline, the bank described in a statement issued following this year’s most recent MPC meeting.

The annual inflation rate inched up to 10.56 percent in November from 8.55 percent in the preceding month. A recent Central Bank survey showed that inflation expectations for 2019 eased to 11.62 percent from 12.18 percent.