Further Interest Rate Cut by Central Bank

* Photo: Central Bank

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Chaired by Murat Uysal, the Central Bank of the Republic of Turkey (TCMB) Monetary Policy Committee convened today (October 24) and decided to cut the policy rate, or the one-week repo auction rate, from 16.50 to 14 percent.

In a written statement published on its official website, the Central Bank has briefly stated the following:

"While industrial production has been highly volatile due to working day effects associated with official holidays in recent months, its underlying trend has maintained a moderate pace of growth.

"While favorable effects of improved competitiveness prevail, weakening global economic outlook tempers external demand. Looking forward, net exports are expected to contribute to economic growth, although to a lesser extent, and the gradual recovery is likely to continue with the help of the disinflation trend and improvement in financial conditions."

Third interest rate cut in a row

The Central Bank's recent interest rate cut has marked the third interest rate in a row. After Central Bank Governor Murat Çetinkaya was removed from office and Murat Uysal was appointed in his place, the Monetary Policy Committee took its first decision of interest rate cut in July and cut the policy rate from its former level of 24 percent to 19.75 percent.

After its meeting on September 12, the Monetary Policy Committee of the Central Bank lowered the policy rate to 16.50 percent.

The next meeting of the committee will be held on December 12. (HA/SD)