Turkey’s central bank on Thursday slashed its policy rate by 50 basis points from 9% to 8.5% as the country continues to reel from the aftermath of a devastating quake which affected millions of lives.
The move, which marks a resumption of a series of interest rate cuts in 2022 in spite of high inflation, was in line with Reuters’ expectations and is the lowest one-week repo rate in more than two years, according to Refinitiv data.
“It has become even more important to keep financial conditions supportive to preserve the growth momentum in industrial production and the positive trend in employment after the earthquake,” the central bank said in a press release, adding that the impact of the earthquake is still being extensively evaluated.
Two consecutive quakes rocked Turkey and Syria earlier this month, and were the region’s strongest in nearly a century with a death toll of more than 46,000 lives thus far.
“While the earthquake is expected to affect economic activity in the near term, it is anticipated that it will not have a permanent impact on performance of the Turkish economy in the medium term,” the statement said.
The country’s most recent inflation rate in January stood at 57.68%.
Turkey’s monetary policy is premised on a pursuit of growth and export competition rather than soothing inflation. Turkish President Recep Tayyip Erdogan espouses the unorthodox view that raising interest rates increases inflation, rather than taming it. The policy dramatically weakened Turkey’s currency last year.
The Turkish lira held steady at 18.87 against the greenback following the central bank decision, CNBC reports.
See all the news
LEADx Change Unveils Season 4 of Leadership Accelerator & Public Square Summit
Forbes to be Acquired by Entrepreneur and Philanthropist Austin Russell
Arrival Hosts Yet Another Successful Metaverse Event: A Recap of the Latest Conference
#საქმიანიდილა - 28 აპრილი - პროლოგი
The company "Tam Management" makes an explanation
#forbesკვირა - ქალაქები,სადაც ცხოვრებაში თანხებს გიხდიან
წერეთლის გამზირის რეაბილიტაცია - სავაჭრო ობიექტების მოლოდინები
როგორ შეიცვალა საცხოვრებელი უძრავი ქონების ფასი 12 წელში?
როდის გაიხსნება რიკოთი?
სახელმწიფო მხარდაჭერის ეფექტიანობა DCFTA-ის ბაზრებზე – ISET-ის კვლევა
"Georgia will be faithful to the European path... I serve this path" - Ambassador of Georgia to France
Cavea plus-ის 6 თვის შედეგები და გამოწვევები
Gold is shining in the new geopolitical world
VR Holding is starting a large-scale and innovative project in Shekvetili
JSC “Rustavi Azot” was sold
We Are Creating An Innovative Co-Working Space In Tbilisi - Sergi Gvarjaladze
State to build Anaklia Port
NG Georgia - თარგმანი ყველა ენაზე
The Rich Often Enjoy Tax Break - Deputy Minister
Israel Got Acquainted With The Business Tourism Potential Of Georgia