Tonight’s decision by the Central Bank of Turkey (CBRT) to cut its benchmark interest rate by 50bps to 6.5% is a bold step aimed at slowing speculative capital inflows. Ultimately it may have to be reversed, but the fact that policymakers are able to consider such a move at a time when inflation is running at well above target and the current account deficit is over 5% of GDP is a reflection of how Turkey’s credibility within the markets has increased over the past decade or so.