The Central Bank of the Republic of Turkey (CBRT) cut the upper band of the interest rate corridor (the marginal funding rate) by another 25 points to 8.75 percent in line with markets' expectations on Tuesday, while it held the policy rate (one-week repurchase agreement rate) and the lower band of the corridor (borrowing rate) at 7.50 percent and 7.25 percent, respectively, Daily Sabah reported.
This means the CBRT has lowered the upper band 2.50 percent in total over the six months preceding July. Also, with this latest move, the CBRT obtained the narrowest interest rate corridor, which it has been using as a monetary policy strategy since 2010.
Economy Minister Nihat Zeybekci told Reuters in an interview late on Monday he expected the central bank to continue with "bold" rate cuts, adding he would understand if it hesitated following Friday's failed coup.
The central bank has responded to the government's repeated calls for cheap credit.
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