The Turkish Central Bank gives in to Erdogan’s pressure. The Institute unexpectedly cut its key one-week repo rate by 100 basis points to 18%. This was announced by the Central Bank at the end of its monetary policy meeting. Expectations were for a confirmation of the reference rate at 19 percent.
This is the first cut in the cost of money since May 2020 that ends a 12-month cycle of rate hikes.
Inflation still high
The decision came after the governor …