Turkish Central Bank Does a Big Rate Cut with New Governor
Posted on 07/25/2019
Armed with a new central bank governor, the Central Bank of the Republic of Turkey (CBRT) cut the benchmark borrowing rate by 425 basis points to 19.75% from 24%. This was Turkey’s first central bank rate cut since 2016. On July 6, 2019, then central bank governor Murat Cetinkaya was replaced by Murat Uysal, the deputy governor.
Turkey’s central bank had increased interest rates in 2018 to combat a falling Turkish lira over high levels of foreign debt, economic policies, and diplomatic arguments with countries such as the United States – prompting a key rate increase from 17.75% to 24%.