Turkey shocks markets with rate cut despite inflation near 80%

Turkey shocks markets with rate cut despite inflation near 80% PUBLISHED THU, AUG 18 20227:14 AM EDTUPDATED MOMENTS AGO Natasha Turak Its main policy rate, which had been at 14% for the last seven months, was cut to 13% in a complete mismatch to what other central banks are doing around the world. Analysts expected no rate change; the move lower by the Turkish central bank has taken markets by surprise. The lira, Turkey’s currency, slid 0.9% against the dollar following the news, trading at more than 18.1 to the greenback — near a record low. Turkish President Tayyip Erdogan arrives for a NATO summit in Madrid, Spain June 29, 2022. Nacho Doce | Reuters Turkey’s central bank shocked markets Thursday with a cut to its benchmark policy rate, despite inflation in the country sitting near 80%. The lira, Turkey’s currency, slid 0.9% against the dollar, trading at more than 18.1 to the greenback after the news — near a record low. More:Turkey shocks markets with rate cut despite inflation near 80%