The Turkish Central Bank has once again sharply lowered its key interest rates. It decided at its regular meeting to reduce the interest rate by 2.5 percentage points to 14 percent.
It was already the third cut in the key rate within four months. Most economists had expected a small reduction. The Turkish lira lost slightly in value against the dollar.
The central bank had raised its key interest rate by 6.25 percentage points to 24 percent in September 2018 following a dramatic fall in the currency and a worrying rise in inflation.
Inflation has fallen below ten percent
Turkish President Recep Tayyip Erdogan was met with sharp criticism that the Islamic conservative politician repeatedly condemned interest rates as "instruments of exploitation" and described them as "the mother and father of all evil".
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After exchanging the head of the central bank, monetary policy makers cut interest rates by 4.25 percentage points in July. In September, they again decided to cut by 3.25 percentage points.
They responded to the relative decline in inflation and the stabilization of the currency. If inflation had reached 25 percent in October last year, it dropped to 9.26 percent this September.