Turkish central bank shocks with 100bp rate cut

Rogoff describes move as “nuts”, as official inflation neared 80% in July

The Central Bank of the Republic of Turkey
Photo: CBRT

The Turkish central bank’s monetary policy committee ordered a 100 basis point cut in the country’s benchmark interest rate. The move was the fifth time the central bank has decreased interest rates since Turkish president Recep Tayyip Erdoğan fired governor Naci Ağbal in March 2021 for tightening monetary policy. But it is the first cut this year.

The Central Bank of the Republic of Turkey’s policy rate is now 13%, down 600 basis points from its March 2021 level. The move comes as inflation

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