Turkey's rate cut a cosmetic change

Today’s cut in Turkey’s overnight lending rate is a cosmetic change, and doesn’t reflect an easing of policy. In fact, the central bank has tightened policy in recent weeks. And with domestic demand accelerating and external imbalances widening again, we think the central bank is likely to tighten policy further over the coming months.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.