Turkish Central Bank announces it will stop cutting interest rates
The decision could help stop rising inflation in Turkey, which is taking a toll on the economy.
Turkey’s Central Bank said today that it will stop cutting interest rates.
The bank’s Monetary Policy Committee said in a statement that it will keep rates “constant” at 14 percent, which it hopes will lead to less inflation in Turkey.
“The Committee expects disinflation process to start on the back of measures taken for sustainable price and financial stability. … Accordingly, the Committee has decided to keep the policy rate unchanged,” read the statement.
A bank’s policy rates refers to the amount of interest charged to borrowers. Turkey's Central Bank setting its rate at 14% means other banks in the country borrow from the Central Bank at that rate.
