Turkey’s central bank trims rates for a 3rd straight month

According to media reports, Turkey’s central bank cut interest rates for a 3rd consecutive month on Tuesday in line with the expectations despite domestic and external threats weighing down on the lira.

The bank cut the overnight lending rate to 9.5% from 10% while keeping its benchmark one-week repo rate unchanged at 7.5% and its overnight borrowing rate at 7.25%. The central bank said that considering inflation expectations, pricing behavior and other factors affecting inflation, they will continue to follow a tight monetary policy. Officials reported limited improvement in Turkey’s core inflation.