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Turkish central bank cuts rate for fourth consecutive month

November 25, 2022 00:00:00

ISTANBUL, Nov 24 (AFP): Turkey's central bank said on Thursday it had cut its main policy rate for the fourth consecutive month despite high inflation.

On the wishes of President Recep Tayyip Erdogan, the bank said it had lowered its benchmark rate from 10.5 percent to nine percent.

With the latest cut, the rate has reached "a sufficient level with regard to growing risks concerning global demand", the bank's council said in a written statement.

It has therefore "decided to put an end to the cycle of lowering interest rates which began in August", it added.

Erdogan had vowed to lower interest rates to single digits by the end of the year as he prioritises economic growth and jobs over price stability ahead of a general election next June.

Last year, interest rates fell from 19 percent in September to 14 percent in December.

They remained stable this year until the summer but have been cut every month since, while inflation has soared.

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