Turkey’s Central Bank Cuts Rates

Turkey’s central bank on Thursday cut its benchmark interest rate further to 7.25% from 7.75% even as tentative signs emerged that the country’s economy is stabilizing.

“Turkey still seems to be in the lower-for-longer camp,” said Timothy Ash, chief emerging-markets economist for Royal Bank of Scotland.

Investors expected the latest rate cut, but also expect it to be last of a dramatic series as the central bank slashed its policy rate from 16.75% last November. Short-term debt markets point to a floor for rates of around 7%.

Wall Street Journal

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza