Turkey cuts interest rates in an effort to boost the economy in the aftermath of the earthquake

Turkey has cut borrowing costs as the central bank seeks to prop up the economy in the wake of this month’s devastating earthquake, the latest in a series of deep interest rate cuts ahead of this year’s elections.

The central bank on Thursday cut its main interest rate by 0.5 percentage point to 8.5 percent, in line with expectations of economists polled by Refinitiv. The standard one-week buyback rate was cut from 19 percent in March 2021 to 9 percent by the end of last year under pressure from Turkish President Recep Tayyip Erdogan.

Policymakers said the latest interest rate cut was partly to cushion the economic impact of the Feb. 6 earthquake, which toppled thousands of buildings, killed more than 47,000 people and upended the lives of millions. “It has become even more important to keep financial conditions supportive to maintain the growth momentum in industrial production and the positive trend in employment after the earthquake,” the central bank said.

The central bank also cited international recessionary risks and indications that cost pressures across the Turkish economy are easing as part of its rationale for its decision.

Erdogan, who wields strong influence over the decision-making process of the central bank, has taken a series of measures in an effort to boost the economy and finances of those affected by the disaster. The government on Wednesday banned companies from firing workers for three months in the 10 affected provinces, while also laying out plans to provide affected companies with help paying employees.

Erdogan’s government has been criticized for its initial response to the quake and for a building amnesty program that analysts say exacerbated the scale of the disaster. The quake occurred at a time when the Turkish president was fighting the toughest election campaign of his two decades in power. He had indicated earlier that the elections would be held on May 14, but some analysts expect him to postpone it.

Economists worry that new cuts in borrowing costs could exacerbate Turkey’s already severe problem with rising prices. Inflation registered just under 58 per cent in January, down from a high of 85.5 per cent in October – but still a very high reading.

Enver Erkan, an independent economist, said that inflation was declining due to very high prices in the previous year period, which is known as the “basic effect,” and that the declines may give the central bank “confidence” to be more proactive. Election rate cuts. “Monetary and fiscal policy will remain broad until the elections,” he said.

The central bank has put in place a wide range of other measures affecting borrowing costs and deposit rates for individuals and businesses, which many economists say have reduced the overall impact of changes in interest rates.

The lira didn’t change much after the interest rate decision, trading near an all-time low of 18.87 Turkish liras against the US dollar. It has fallen by 27 percent over the past 12 months as a result of high inflation and low interest rates.

Government moves to get businesses and individuals to hold more lira, along with central bank interventions, have helped prevent the currency from slipping further.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos