Turkish central bank keeps cutting rates despite higher inflation

Murat Uysal
Murat Uysal
Photo: CBRT/Flickr

The Central Bank of the Republic of Turkey reduced interest rates by 50 basis points today (February 19) despite rising inflation, taking real interest rates further into negative territory.

As a result, the one-week repo rate is now at 10.75%. Turkish real interest rates were already negative in January. In that month, the central bank’s monetary policy committee (MPC) cut policy rates to 11.25%, while December’s year-on-year inflation rate was 11.84%.

In January, year-on-year inflation in

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