Turkey cuts by 125 basis points

The Central Bank of Turkey cut its key rate by 125 basis points on Thursday after the slowdown in the Turkish economy showed signs of intensifying.

The cut leaves the central bank's benchmark overnight borrowing rate at 15% - its lowest level since June 2006. Its overnight lending rate falls to 17.5%. The cut is the steepest since December 2004. Analysts had largely expected a half-point move.

The central bank said signs of a worse-than-expected slump justified the move: "Recent readings indi