Turkey’s Central Bank Cuts One-Week Repo Rate to 12%

The video discusses a 200 basis point rate cut, reducing the key rate from 14% to 12%. Despite this, the lira has not significantly changed against the dollar. Analysts expected a smaller cut of 150 basis points. The central bank has undergone leadership changes, with a new governor overseeing 1200 basis points of cuts. Despite these changes, the lira has strengthened since June. The central bank's wording suggests a slowdown in rate cuts, with the real base rate now at 1.4% considering inflation. The central bank may have limited room for further cuts unless inflation decreases.

What was the recent change in the central bank's key interest rate?

• A 200 basis point cut

• A 100 basis point increase

• A 150 basis point cut

• No change

What significant event occurred in early July concerning the central bank?

• The central bank introduced a new currency

• The central bank stopped all rate cuts

• The central bank increased rates by 1200 basis points

• The central bank governor was replaced

How has the lira performed against the dollar since the end of June?

• It has weakened significantly

• It has remained stable

• It has strengthened

• It has fluctuated wildly

What does the central bank's wording suggest about future rate cuts?

• They will maintain the current pace

• They will slow down the pace of cuts

• They will stop all cuts immediately

• They will increase the pace of cuts

What is the current real base rate after accounting for inflation?

• 2.5%

• 0.5%

• 3.0%

• 1.4%