The Central Bank of Turkey decreased the key interest rate by 250 basis points to 45%, as expected, on Thursday.
Experts note that the reduction of the interest rate by 2.5 percentage points is the largest in the last five years. The Central Bank made this decision in light of domestic and external demand and inflationary expectations.
In recent years, Turkey's economy has faced many challenges that have had a negative impact on the country. However, the anticipated decisions, such as the decrease in the interest rate, help strengthen the economy and stimulate the growth of production and consumption.
"The reduction of the key interest rate is a necessary step to support the economy during a period of instability," noted the representative of the Central Bank of Turkey.
