The Central Bank of Turkey reduced its key interest rate by 250 basis points, bringing it down from 50% to 47.5% annually. This marks the first rate cut in two years.
The reduction exceeded analysts’ expectations. A Bloomberg survey showed most experts predicted the rate would drop to 48.25%.
JPMorgan Chase and Deutsche Bank anticipated a smaller cut of 150 basis points. Citigroup and Bank of America however correctly forecasted the rate reduction to 47.5%.
