Turkey cuts rates again as volatility eases

The Associated PressJuly 17, 2014 

— Turkey's central bank has cut its main interest rate by a further half percentage point as it continues to lower borrowing rates following a big increase earlier this year to support the country's currency.

The central bank on Thursday cut its main rate, the one-week repo rate, to 8.25 percent from 8.75 percent amid what it says were improvements in global liquidity conditions in recent months.

In January, the bank increased rates to support the currency, which had fallen sharply as investors fretted over the outlook for many emerging economies.

The government of Prime Minister Recep Tayyip Erdogan has been pressuring the bank for a large rate cut.

William Jackson, emerging markets economist at Capital Economics, says further rate cuts look likely over the coming months.

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