Voicing a much-stringent tone to reduce the transcontinental nation’s inflation, Turkey’s President Tayyip Erdogan said on Sunday, the 4th of August 2019, that Turkey’s Central Bank would reduce interest rate further in a near-term outlook to grapple with a fistful of nefarious inflation indicators raising alarming bell over the nation’s economy over the recent years.
In point fact, Turkey’s Central Bank had eased its key interest rate on excess reserves by 425-basis points or 4.25 percentage point to 19.75% last month in a bid to revive Ankara’s recession-struck economy, beating an analysts’ estimate of 250 basis point or by 2.5 percentage point.
Nonetheless, latest rate cuts by Turkey’s Central Bank came forth after Erdogan had appointed Murat Uysal, a former associate professor of electronics and communication engineering at Ozye in University, Istanbul, as its new governor later on April aimed at downsizing the nation’s inflation indicators.
In actuality, after Murat Uysal had taken office late on April, Turkish Lira gained roughly 6 percent so far against its American counterpart followed by a steep plunge of more than 30 percent last year. However, expressing sheer optimism over further interest-rate cuts in a near-term outlook, which would likely to bolster Lira’s stance against an over-valued American dollar, Erdogan said, “The central bank has cut interest rates and will be further reduced. ”