Turkish central bank has decided to reduce the policy rate (one-week repo auction rate) from 10.50 percent to 9.00 on Thursday.

“The effects of slowing foreign demand on aggregate demand conditions and production are closely monitored. It is critically important that financial conditions remain supportive for the sustainability of structural gains in supply and investment capacity by preserving 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.

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 12.00 percent to 10.50.  (ILKHA)