Turkey’s Central Bank cuts interest rates 0.50%
by ChemOrbis Editorial Team - content@chemorbis.com
According to media reports, Turkey’s Central Bank (TCMB) has cut its one-week repo rate on January 20 by 50 basis points to 7.75% from 8.25%. The bank kept the overnight lending rate at 11.25% and the overnight borrowing rate at 7.5%.
The bank cited decreasing inflation on the back of sharply plunging global crude oil prices as the main reason for their downward decision. Since June 2014 crude oil prices have lost more than half of their value especially following OPEC’s decision not to cut production in November.
Meanwhile, according to a statement released by HSBC, Turkey will benefit most from lower crude oil prices in the short term compared with other oil importer countries in Eastern Europe and Middle East as lower crude oil prices mean a decrease in the country’s current account deficit and lower inflation rate. HSBC expects the country’s inflation to decrease to 6.2% this year from its latest estimate of 7.2% reported in October.
The bank cited decreasing inflation on the back of sharply plunging global crude oil prices as the main reason for their downward decision. Since June 2014 crude oil prices have lost more than half of their value especially following OPEC’s decision not to cut production in November.
Meanwhile, according to a statement released by HSBC, Turkey will benefit most from lower crude oil prices in the short term compared with other oil importer countries in Eastern Europe and Middle East as lower crude oil prices mean a decrease in the country’s current account deficit and lower inflation rate. HSBC expects the country’s inflation to decrease to 6.2% this year from its latest estimate of 7.2% reported in October.
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