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%.
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