On 24th June KTLN published a Local News article outlining Turkish interest rate history, and we mentioned that the outlook was for further modest rate cuts.  See article: click here.

The Turkish Monetary Policy Committee (TMPC) met on 16th July, and as expected, they decided to lower interest rates.  The lending rate has come down by 0.5% to 10.75%.  This rate represents broadly what you might expect to earn (gross) on a lump sum investment with a Turkish bank.

You can read the rationale for this decision by looking at the Central Bank of Turkey website. 

The comments of the TMPC make reference to the fact that "...further measured rate cuts will be necessary in the short term unless there is a robust recovery in economic activity".  As the current economic data suggest a slow and protracted recovery, KTLN is inclined to believe that these further cuts will take place.