19 August 2022; MEMO: Turkiye's Central Bank shocked markets, Thursday, with a cut to its benchmark policy rate, despite inflation in the country sitting near 80 per cent, Financial Times reports.
According to the report, the Turkish Central Bank's statement, Thursday, said that the committee expects the "disinflation process to start" and that there are signals of a "loss of momentum in economic activity."
Turkish lira slid 0.9 per cent against the dollar, trading at more than 18.1 to the greenback after the statement.
The lira has lost 26 per cent of its value against the dollar year to date, and plunged 80 per cent against the greenback in the last five years, the report added.
Consumers in Turkiye will likely be even more concerned about the inflation figures that are expected to rise further by the end of 2022.
