RTTNews - Turkey's central bank Thursday cut the borrowing rate, or the country's main interest rate to 9.25% from 9.75%. At the same time, the central bank also reduced the lending rate to 11.75% from 12.25%.
The central bank's Monetary Policy Committee said that the recent developments were consistent with the outlook presented in the April Inflation Report. The 50 basis points rate cut came on the back of weak external demand and a contraction in domestic investment demand, which indicated that economic activity and employment were not likely to recover soon. Moreover, the decline in oil and other commodity price inflation were likely to contribute to a decrease in the headline inflation in the near term, the Committee said.
Looking ahead, the Committee said the next rate cut may be measured, although it feels that an easing bias has to be maintained for a considerable period.
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