The one-week repurchasing rate remained stable at 7.5 percent while the overnight borrowing rate also remained intact at 7.25 percent, the bank said on its website.
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The steady cuts started just after current Central Bank Governor Murat Cetinkaya took over this April from his predecessor Erdem Basci, whom the government criticized for holding rates too high.
Turkey’s economy has suffered this year in the face of a string of extremist attacks and uncertainty following the failed coup on July 15 that saw more than 270 people killed. Inflation in Turkey is at eight percent this year, slightly down from 2015.
While the currency has recovered most of its losses following the coup attempt, Erdoğan said it is still not at a desirable level, adding that the currency didn’t experience an explosion, even after the coup attempt.
It also said in a statement that the core inflation trend was expected to improve gradually while developments in the inflation outlook necessitate keeping a tight liquidity stance.
“Now the new administration of the Central Bank, taking into consideration the government’s interest rates policies, have been carrying out cuts since they took office”.
Amid concerns over the economic slowdown affecting consumption, Prime Minister Binali Yildirim said that the limit on credit card instalments for paying off debts would increase to 12 months from nine in a bid to boost spending. On Thursday, the regulator reduced the rate to 8.25 percent, marking the seventh straight month of cuts.
Economy Minister Nihat Zeybekci sounded an optimistic note at the Turkey Investment Conference in NY, saying that since July 15, $600 million flowed into the Borsa Istanbul stock exchange.
Turkish President Recep Tayyip Erdogan said he is not concerned if American rating agencies like Fitch, S&P or Moody’s downgrade his country to junk status.
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However, if either of the two agencies cut their grades Turkey’s average rating would be junk, since Standard & Poor’s already has Ankara below the investment-grade threshold.
