CBRT Cuts Rates by 150bps, A Larger Cut Than Expected

Turkey's CBRT cuts rates by 150bps to 10.50%, against expectations of a 100bps cut.

Full policy statement here: TCMB - Press Release on Interest Rates (2022-42)

Statement highlights:

• Again flags benchmark / commercial loan rate spread: "the spread between policy rate and the loan interest rates driven by the announced macroprudential measures is closely monitored."
• Still sees disinflation setting in next year: "Committee expects disinflation process to start on the back of measures taken"
• Looking to support jobs: " critically important that financial conditions remain supportive to preserve the growth momentum in industrial production and the positive trend in employment"
• Could pause rate cut cycle: "The Committee evaluated taking a similar step in the following meeting and ending the rate cut cycle."