Turkey changes tack and cuts rates

The Central Bank of Turkey has shifted its monetary policy stance and cut rates on signs of slowing growth and below-target inflation in the years to come.

The central bank lopped a half point off its benchmark overnight borrowing rate, the cost charged to banks seeking overnight loans, and cut its overnight lending rate by a full percentage point . The cuts leave the rates at 16.25% and 18.75% respectively.

The decision to slim the margin between the key lending and borrowing rates by 50 bas