Turkish rate cut baffles markets as inflation heads for double figures

Turalay Kenç

The Central Bank of the Republic of Turkey (CBRT) today took markets by surprise, cutting its policy interest rate from 10% to 9.5%, but saying its monetary policy stance "will continue to be tight… until there is a significant improvement in the inflation outlook".

The central bank's claim that the rate cut leaves policy "tight" fits with the interpretation of a sharp rate hike in January this year having been a "front-loaded" move, as CBRT deputy governor Turalay Kenç described it in an

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