Turkey's Central Bank reduces key rate to 9%

Turkey's Central Bank reduces key rate to 9%

Turkey’s Central Bank reduced the policy rate (one-week repo auction rate) from 10.5% to 9% on Thursday.

In October the rate was cut from 12% to 10.5%.

The regulator’s decision coincided with projections by the majority of analysts suggesting that the Central Bank was following the political will of Turkish President Tayyip Erdogan who pledged to cut the rate each month.

The decision to reduce the rate was based on the fact that "the current policy rate is adequate," and "considering the increasing risks regarding global demand" it was decided "to end the rate cut cycle that started in August," the regulator said in a press release. Annual inflation in the country totaled 83.45% in September, according to official figures, compared to 80.21% in the previous month.