Türkiye's Central Bank sharply reduces key rate

According to Daily Sabah, the Central Bank of Türkiye reduced the key interest rate to 43% yesterday.

The regulator has reduced the key rate by 300 basis points, which became possible amid falling inflation in Türkiye, and the country's central bank has moved to softening monetary policy. June's annual inflation stood at 35.05%. In July, demand in the economy has a disinflationary effect, but there are seasonal factors for a temporary increase in inflation.

The Turkish lira exchange rate remained stable after the decision at 40.48 to the dollar following the sharp rate reduction.