Turkish Central Bank lowers interest rates 325 bps

The bank lowered its one-week lipo rate to 325 basis points from 19.75 percent to 16.50 percent.

Traders are counting Turkish Lira bills at the Grand Bazaar in Istanbul, Turkey. March 29, 2019

Traders are counting Turkish Lira bills at the Grand Bazaar in Istanbul, Turkey. March 29, 2019
(Reuters Archive)

On Thursday, the Turkish central bank lowered its main interest rate by 3.25 percentage points.

The bank said the weekly lipo rate fell from 19.75{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} to 16.50{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} after a 4.25 percentage point decline in July.

Bloomberg consensus forecast a 2.75 percentage point cut.

Turkish Lira rose more than 1.1 percent towards 1130 GMT after the bank announcement to US $ 5.68 in US dollars.

According to official figures released last week, the market stopped interest rate cuts last August and inflation in August fell to 15.01{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} from the 15-month low of 16.65.

Along with this decision, the bank stated in its statement that "the inflation outlook continued to improve," and "slow recovery in economic activity" continued.

Source: AFP

Source Link : https://www.trtworld.com/turkey/turkish-central-bank-lowers-interest-rates-325-bps-29724?utm_source=other&utm_medium=rss

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