“The effects of slowing foreign demand on aggregate demand conditions and production are closely monitored. It is critically important that financial conditions remain supportive to preserve the growth momentum in industrial production and the positive trend in employment in a period of increasing uncertainties regarding global growth as well as a further escalation of geopolitical risks. Accordingly, the Committee has decided to reduce the policy rate by 150 basis points,” the bank said in a statement released following the meeting of the Monetary Policy Committee.

“The Committee evaluated taking a similar step in the following meeting and ending the rate cut cycle. To create an institutional basis for sustainable price stability, the comprehensive review of the policy framework continues with the aim of encouraging permanent and strengthened liraization in all policy tools of the CBRT.”

“The credit, collateral, and liquidity policy actions, of which the review process is finalized, will continue to be implemented to strengthen the effectiveness of the monetary policy transmission mechanism,” the bank added.

Turkish Lira weakens against the U.S. dollar after the bank’s Monetary Policy Committee rate decision.

Last month, the bank decided to reduce the policy rate (one-week repo auction rate) from 13.00 percent to 12.00.  (ILKHA)