Turkey's Central Bank cuts interest rates


September 22, Fineko/abc.az. The Central bank of Turkey has lowered its key interest rate by 1 percentage point, to 12% from 13%, despite record-breaking inflation.

ABC.AZN reports that most analysts expected that the regulator would leave the rate unchanged.

The rate was lowered for the second time in a row, and before that, the Turkish Central Bank kept it unchanged from December 2021 after cycle of monetary policy easing.

Inflation in Turkey accelerated to 80.2% in annual terms in August from 79.6% in July, reaching the highest since 1998.

The central bank went for a rate cut due to the need to support slowing economic growth and consumer demand, as well as "against the background of escalating geopolitical risks," the regulator said in a statement.