The Turkish Central Bank on Thursday reduced the policy interest rate from 9% to 8.5%, anticipating that the devastating earthquakes, which rocked the country earlier this month, would not have a permanent impact on the Turkish economy
MOSCOW (Pakistan Point News / Sputnik - 23rd February, 2023) The Turkish Central Bank on Thursday reduced the policy interest rate from 9% to 8.5%, anticipating that the devastating earthquakes, which rocked the country earlier this month, would not have a permanent impact on the Turkish economy.
"The Monetary Policy Committee (MPC) has decided to reduce the policy rate (one-week repo auction rate) from 9 percent to 8.5 percent. While the earthquake is expected to affect economic activity in the near term, it is anticipated that it will not have a permanent impact on performance of the Turkish economy in the medium term," the bank said in a press release.
Turkey has been facing anemic economic growth since 2021, with consumer inflation skyrocketing and the Turkish lira experiencing unprecedented volatility. The central bank kept the rate unchanged at 14% for a long time last year, which resulted in a weakening of the national currency, the lira.
