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Turkish central bank cuts interest rates by 1.50% but announces end of monetary easing cycle

Turkey’s central bank cut its key interest rate by 1.50% to 9.0%, announcing an end to the monetary easing cycle to counter the increased risk of inflation.

Inflation in Turkey reached 85.5% in October as energy and food prices rose again.

Previously, the Central Bank of Turkey cut interest rates in September 2021 under pressure from Turkish President Recep Tayyip Erdogan, who had previously announced the dismissal of several central bank governors, for failing to respond to the government’s monetary easing policy.

President Erdogan claimed that a low interest rate policy would boost exports and employment in the country.

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