Turkey makes surprise rate cut

The Central Bank of the Republic of Turkey unexpectedly decided to lower interest rates by 25 basis points on Thursday.

The benchmark overnight borrowing rate is now 17.25%, the late liquidity window rate is 13.25%, and the rate on overnight and one-week maturity borrowing facilities provided for primary dealers via repo transactions is 21.25%.

In explaining the cut, the central bank said: "Aggregate demand conditions continue to support the disinflation process." Inflation is set to remain w