The Turkish Central Bank Monetary Policy Committee announced on Thursday it will cut its interest rates by 150 basis points to 9% and will seek alternative supportive tools to curb the raging inflation in the country which surged to 85.5% in October.
The central bank warned that inflation may last longer than projected "due to high energy prices, supply-demand mismatch, and rigidity in labor markets," noting the bank will use all disposable tools to bring down the interest rates to 5% in the medium term, ending the cycle that started in August.
"The high course of energy prices and the possibility of a recession in the main export markets keep the risks on the current account balance alive. It is important for price stability that the current account balance becomes permanent at sustainable levels," the central bank noted in the statement.
