Türkiye halts easing cycle with one last interest rate cut

Turkish central bank

Xinhua News

24th November 2022 – (Ankara) The Turkish central bank ended the easing cycle in benchmark rate with the last cut by 150 basis points to 9 percent on Thursday.

The central bank’s Monetary Policy Committee said in a statement that “considering the increasing risks regarding global demand, the Committee evaluated that the current policy rate is adequate and decided to end the rate cut cycle that started in August.”

The central bank had kept the interest rate at 14 percent for eight months this year and started to lower it since August, while Türkiye’s annual inflation hit 85.51 percent in October, the highest in 24 years.

Turkish President Recep Tayyip Erdogan had pledged to bring rates into single digits before the end of this year.

After the dramatic plummet in 2021, the Turkish lira lost some 55 percent against the U.S. dollar since the Turkish central bank embarked on its easing cycle, making it one of the worst-performing currencies over the period.