<p>Turkey’s central bank cut its key interest rate on Thursday to the lowest in three years, in an extension of the country’s emergency response to its worst earthquake disaster in decades.</p><p>Turkish Weekly Repo Rate Actual 8.5% (Forecast 8%, Previous 9.00%)</p><p><a target=“_blank“ href=“https://www.bloomberg.com/news/articles/2023-02-23/turkey-delivers-smaller-rate-cut-than-forecast-after-earthquakes?utm_source=twitter&utm_content=middleeast&utm_medium=social&utm_campaign=socialflow-organic&sref=1STrqapn“ target=“_blank“ rel=“nofollow“>BBG</a></p><p>After a two-month pause, the Monetary Policy Committee led by Governor Sahap Kavcioglu lowered its one-week repo rate to 8.5% from 9%. Most economists surveyed by Bloomberg expected a full percentage-point reduction</p><p>What Bloomberg Economics Says… “The rate cut will likely increase the pressure on the lira, which will curtail the expected deceleration in price gains. As for inflation, the central bank may be relying on strong base-effects to deliver a mechanical deceleration.”</p>

This article was written by Ryan Paisey at www.forexlive.com.