The Central Bank of Turkey reduced the benchmark repo rate by 25 basis points to 6.25% from 6.50% in an unconventional monetary policy move designed to weaken the Lira (as opposed to the usual goal of monetary policy being about maintaining price stability and/or minimising inflation). The Bank is seeking to reduce hot capital inflows and address the current account deficit. The Bank has also signalled it may also continue to increase reserve requirements to limit loan growth.
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