ANKARA: Turkey’s central bank cut its one-week repo rate by 25 basis points, as inflation slows and it faces growing political pressure to ease monetary policy.
The bank cut the repo rate to 7.5 percent and lowered its overnight borrowing rate to 7.25 percent. It cut its overnight lending rate by 50 basis points to 10.75 percent and its primary dealers’ overnight borrowing rate to 10.25 percent. Of 19 economists polled by Reuters, 14 expected a cut in the repo rate of between 0.25 and 0.75 percent, with eight forecasting 0.25 percent.
The central bank said on Tuesday it would keep monetary policy cautious until there was clear evidence of a significant improvement in the inflation outlook.
