Turkey’s Central Bank lowers policy rate to 12%

Turkey's Central Bank lowers policy rate to 12%

Turkey’s Central Bank decided on Thursday to lower its policy interest rate by 100 basis points to 12%.

The move to lower rates was made in order to protect industrial production and employment against increasing uncertainties, the bank said.

“To create an institutional basis for sustainable price stability, the comprehensive review of the policy framework continues with the aim of encouraging permanent and strengthened liraization in all policy tools,” the bank added.

The bank noted that global economic growth forecasts are decreasing and the recession possibility is increasing.

“While the negative consequences of supply constraints in some sectors, particularly basic food, have been alleviated by the strategic solutions facilitated by Turkey, the upward trend in producer and consumer prices continues on an international scale.”

The annual inflation rate was at 80.2% in the last month in Turkey.

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