Turkey’s Central Bank keeps discount rate at 14%

The Central Bank of Turkey has kept the discount rate at 14%, Report informs with reference to the Turkish media.

Last year, in December, the discount rate was cut by 100 basis points to 14% from 15%. In January, the regulator kept the rate at the same level.

The decision on the rate was in line with what most economists expected it to be.

In 2021, after several consecutive cuts in the discount rate of the Central Bank, the depreciation of the national currency accelerated sharply, which negatively affected the country’s financial system.

The collapse of the Turkish lira on November 23 by 18% was the highest in the last 20 years. The dollar exchange rate on December 20 reached a record 18.4 liras, while in January last year the dollar was worth 7.4 liras.