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brought in easing of 750 bp overall since the president fired its governor two months ago for not cutting rates soon enough or fast enough.
The cut introduced by the central bank’s monetary policy committee (MPC) brings the main policy rate (one-week repo auction rate) to 16.50%, the authority announced in a written statement.
The market consensus prior to the announcement was that the cut would be in the 250-275 bp range. Prior to the replacement of the central bank governor, there were no market expectations that the benchmark rate could fall from 24% to 16.50% via just two MPC meetings, but Erdogan has made regular and ‘noisy’ statements in recent weeks outlining how he expected major monetary loosening. The next MPC meeting is scheduled for October 24, while the last one of the year is to take place on December 12.
8.3 Stock market
8.3.1 Equity market dynamics
60 TURKEY Country Report October 2019 www.intellinews.com