Turkish Central Bank Cuts Benchmark Rate to 15%

The Turkish Central Bank cut its benchmark one-week repo rate by 100 basis points from 16% to 15%.

Acting accordingly to market expectations, the committee “evaluated the analyses to decompose the impact of demand factors that monetary policy can have an effect, core inflation developments and supply shocks.”

The bank says recent increases in inflation had been driven by supply-side factors such as rising food and import prices, especially in energy, and supply constraints. It is said that they will consider to complete the use of the limited room implied by these factors in December.

With this cut, monetary authority has lowered key rate by 400 basis points since September.