Turkey Unexpectedly Held Rates in October

The Turkish Central Bank unexpectedly halted its long cycle of rate cuts due to the rapid depreciation of the lira and rising consumer inflation. Political pressures for lower interest rates were diminishing, with signs of economic slowdown evident. Two senior advisors to President Erdogan indicated that rate cuts should not be assumed, citing concerns over the lira's trading level. The Central Bank remains cautious and will monitor the lira's performance before making future rate decisions.

Why did the Turkish Central Bank decide to stop its rate cuts?

• Due to rapid appreciation of the lira

• Because of political stability

• To address the damaging effects of the lira's depreciation

• To increase consumer spending

What was the stance of President Erdogan's senior advisors regarding rate cuts?

• They were indifferent to the rate cuts

• They fully supported continuous rate cuts

• They believed rate cuts should be taken for granted

• They suggested rate cuts could be halted if necessary

What was the economic condition that prompted the Turkish Central Bank to consider halting rate cuts?

• Increased foreign investment

• Signs of economic slowdown

• A stable currency

• Rapid economic growth

What is the current sentiment among economists about the rate cut cycle?

• It will continue indefinitely

• It is too early to determine if it has ended

• It has definitely ended

• It will resume next month

What is the Turkish Central Bank's concern regarding the lira?

• Its impact on exports

• Its current trading level

• Its high value

• Its stability