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

  • NY sisters inspired by Khmer heritage

    Growing up in Brooklyn, New York, Cambodian-American sisters Edo and Eyen Chorm have always felt a deep affinity for their Cambodian heritage and roots. When the pair launched their own EdoEyen namesake jewellery brand in June, 2020, they leaned heavily into designs inspired by ancient Khmer

  • Omicron patients can stay home: PM

    Prime Minister Hun Sen has given the green light for anyone who contracts the SARS-CoV-2 Omicron mutation or any other variant to convalesce or receive treatment at home or in any other reasonable non-healthcare setting. The new decision supersedes a restriction on home care for

  • Cambodia records first Omicron community case

    The Ministry of Health on January 9 reported 30 new Covid-19 cases, 29 of which were imported and all were confirmed to be the Omicron variant. The ministry also reported 11 recoveries and no new deaths. Earlier on January 9, the ministry also announced that it had detected the Kingdom's

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • Cambodia’s first ever anime festival kicks off Jan 22 at capital’s F3 centre

    Phnom Penh's first ever Anime Festival will bring together fans, artists, shops and other local businesses with ties to the Japanese animation style for cosplay competitions, online games, pop-up shops and more on January 22, with Friends Futures Factory (F3) hosting. F3 is a project that

  • PM eyes Myanmar peace troika

    Prime Minister Hun Sen has suggested that ASEAN member states establish a tripartite committee or diplomatic troika consisting of representatives from Cambodia, Brunei and Indonesia that would be tasked with mediating a ceasefire in Myanmar. The premier also requested that Nippon Foundation chairman Yohei Sasakawa