Turkey’s Central Bank Cuts Rate by Another 100bps

Turkey’s central bank once again cut its interest rate on Thursday despite soaring inflation of over 80% in the country.

The Turkish monetary policy committee lowered the interest rate by  another 100 basis points, following its surprised move in August that also cut rates by a full-percentage point. The cut in September will bring the key one-week repurchase rate from 13% to 12%.

Turkey announced that its inflation in August was 80.2%, showing an acceleration for the 15th consecutive month and the highest level in 24 years.

As central banks around the world are jumping on the rate-hike train, especially the US Federal Reserve that is fully committed to bringing down the inflation rate to its 2% target, and will not stop until the goal is achieved.

The Turkish lira lost more than 27% of its value this year against the dollar.