Continuing the recent trend of interest rate cuts, the Central Bank of Turkey (CBT) lowered its lending rate again on 17th September 2009, from 10.25% to 9.75%.

As far as the future is concerned, we quote from the CBT press release: "The Committee reiterates that it will be necessary for the monetary policy to maintain an easing bias for a long period of time.  The size and the duration of the rate cuts will depend on the pace of the recovery in economic activity. Moreover, further improvements in the risk premium may lead to a longer rate cut cycle".

In layman's terms this means, expect more rate cuts.

For previous Kalkan Turkish Local News articles on this subject see below (read more):

June article
July article
Aug article