Turkey's Central Bank cuts interest rates 75 bps

ANKARA

The Central Bank of Turkey (CBRT) on Jan. 16 cut its one-week repo rate by 75 basis points.

The bank's policy rate, also known as one-week repo auction rate, has been revised to 11.25 percent, down from 12 percent,  according to a written statement.

The bank scheduled 12 committee meetings for 2020.

A group of economists polled by Anadolu Agency on Oct. 21 expected no change in the interest rates.

Last year, the bank held eight MPC meetings, as interest rates fell by 1,200 basis points over the course of the year, from 24 percent.

The bank said the course of inflation is considered to be broadly in line with the year-end inflation projection.

"Accordingly, considering all factors affecting the inflation outlook, the committee decided to make a measured cut in the policy rate."

In its latest report, Turkey's Central Bank cut the country's year-end inflation forecast from 13.9 percent to 12 percent, in line with the government's projection as laid out in the new economic program for 2020-2022.

The bank's forecast for this year was unchanged at 8.2 percent, while the new economic program targets 8.5 percent inflation rate for 2020.

According to latest data from the Turkish Statistical Institute (TÜİK), the country's inflation rate was 11.84 percent in December.

The statement also stressed that the current monetary policy stance remains consistent with the projected disinflation path.