Turkey's Central Bank Makes Another Interest Rate Cut Amid Slowing Inflation
Turkey's central bank lowered its key interest rate by a further 2.5 percentage points on Thursday, days after official figures indicated a slowdown in inflation that has eroded households' purchasing power.
In a move to bolster the economy and respond to the recent trend of slowing inflation, Turkey's central bank has decided to cut its key interest rate by 2.5 percentage points. This decision comes as a response to the latest data showing a decrease in inflation levels, which have been negatively impacting the purchasing power of households across the country.
The central bank's decision to lower the interest rate is aimed at stimulating economic growth and promoting investment. By reducing borrowing costs, the central bank hopes to encourage businesses and consumers to spend and invest more, thereby boosting economic activity in the country.
However, some experts have expressed concerns about the potential risks associated with lowering interest rates, including the possibility of sparking inflationary pressures in the future. Despite these concerns, the central bank has deemed it necessary to implement this rate cut in order to support the economy and address the current challenges faced by consumers and businesses.