Turkey's central bank announced at its monetary policy meeting that it would cut its policy rate by 1% to 12% amid record inflation.
Interest rates have been cut for the second time in a row, and the currency lira hit a new low against the dollar, causing turmoil in the market.
Turkey's consumer price index rose to a record level of over 80% in August compared to the same month of the previous year, affecting the lives of citizens.
Under these circumstances, the central bank of Turkey held a meeting to decide monetary policy on the 22nd, saying that "the growth of the Turkish economy is slowing down" and to support the economy and improve employment, cut the main policy interest rate by 1%. , announced that it will be 12%.
It will be the second consecutive rate cut.
President Erdoğan has argued that ``high interest rates will cool the economy,'' and the central bank has decided to cut interest rates in line with the president's will.
While central banks in Europe and the United States are accelerating interest rate hikes to curb inflation, Turkey's decision to cut interest rates has forced the currency lira to sell in the foreign exchange market, temporarily declining to around the mid-18 lira level to the dollar. The lowest price was renewed, and the turmoil spread in the market.
With the presidential election scheduled for June 2023, economic policy is the biggest point of contention in Turkey.