Turkey Slashes Key Rates By 250 Bps

Turkey's central bank slashed its key interest rates by 250 basis points on Thursday citing slowdown in the underlying trend of inflation.

The Monetary Policy Committee of the Republic of Turkey decided to reduce the policy rate to 40.5 percent from 43.0 percent.

Previously, the bank had reduced the rate by 300 basis points in July.

The committee also lowered the central bank overnight lending rate and the overnight borrowing rate by 250 basis points each to 43.5 percent and 39 percent, respectively.

"The tight monetary policy stance, which will be maintained until price stability is achieved, will strengthen the disinflation process through demand, exchange rate, and expectation channels," the bank said.

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