Logo of Phnom Penh Post newspaper Phnom Penh Post - Turkish central bank cuts interest again

Turkish central bank cuts interest again

Content image - Phnom Penh Post
Governor of Central Bank of the Republic of Turkey (CBRT), Murat Uysal presents the Inflation Report during a press conference, in Ankara. AFP

Turkish central bank cuts interest again

Turkey's central bank on Tuesday cut its main interest rate again by a full percentage point to 9.75 per cent to support the economy as the new coronavirus impact worldwide grows.

The one-week repo auction rate was trimmed by one percentage point, it said, as developments regarding the coronavirus “have weakened the global growth outlook”.

The bank said its monetary policy committee met two days earlier than was scheduled on Thursday to discuss the potential economic and financial impacts of the coronavirus.

“The pandemic disease is closely monitored for its evolving global impact on capital flows, financial conditions, international trade and commodity prices,” the bank said.

The Turkish lira was down over one per cent to reach 6.49 against the US dollar after the bank’s announcement.

The bank cut the rate as “downside risks on the year-end inflation projection have increased,” it added in a statement.

Inflation in February rose slightly to 12.37 per cent from 12.15 per cent in January.

The latest interest rate cut is the seventh in eight months, coming down from 24 per cent in July.

There have been 47 recorded cases so far of Covid-19 in Turkey.

The bank also announced a series of measures to mitigate the economic fallout, including providing further liquidity to banks if needed.

In a note, London-based Capital Economics said despite the cut, the weaker lira would limit the scope of easing.

“Turkey’s poor external position means that deeper interest rate cuts are likely to put the lira – which has fallen by almost four per cent against the dollar so far this month – under even more pressure,” it said.

MOST VIEWED

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Phnom Penh governor: Show Covid-19 vaccination cards, or else

    Phnom Penh municipal governor Khuong Sreng late on October 5 issued a directive requiring all people aged 18 and over and the parents of children aged 6-17 to produce Covid-19 vaccination cards when entering schools, markets, malls, marts, eateries and other business establishments that have been permitted

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Cambodia seeks probe into 'false reports' on Hun Sen's alleged Cypriot passport

    Minister of Justice Koeut Rith on September 6 wrote a letter to his Cypriot counterpart Stephie Dracos requesting cooperation in investigating and providing the truth in relation to the "exaggerative and false allegations" that Prime Minister Hun Sen holds a Cypriot passport. In his letter, the

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • 'Pandora Papers' expose leaders' offshore millions

    More than a dozen heads of state and government, from Jordan to Azerbaijan, Kenya and the Czech Republic, have used offshore tax havens to hide assets worth hundreds of millions of dollars, according to a far-reaching new investigation by the International Consortium of Investigative Journalists (