Turkey central bank bows to Erdogan pressure on rates
ANKARA - Turkey's central bank on Tuesday announced a 25 basis points cut in its headline interest rate, following months of pressure from President Recep Tayyip Erdogan for aggressive easing to stimulate growth.
The bank said in a statement after its latest monetary policy meeting that the one-week repurchase rate would be dropped to 7.50 percent from 7.75 percent.
It trimmed the marginal funding rate slightly more, by 50 basis points, from 11.25 percent to 10.75 percent.
It remains doubtful that the relatively cautious easing will be enough for Erdogan who has accused the nominally independent central bank of "dragging Turkey down" in comments that have severely damaged the Turkish lira.