“Turkey cuts interest rates again as country struggles under 80% inflation”
September 22, 2022
“Turkey’s central bank surprised markets once again with its decision Thursday to cut its key interest rate, despite inflation in the country surging beyond 80%.
The country’s monetary policymakers opted for a 100 basis point cut, bringing the key one-week repurchase rate from 13% to 12%. In August, Turkish inflation rate was recorded at 80.2%, quickening for the 15th consecutive month and the highest level in 24 years.
Turkey also cut rates by 100 basis points in August, and had gradually lowered interest rates by 500 basis points at the end of 2021, setting off a currency crisis…
The lira has lost more than 27% of its value to the dollar year to date, and 80% in the last five years. Following the bank’s rate decision announcement, the currency was down a quarter of a percentage point, trading at a record low of 18.379 to the dollar…”