During the gathering of the forum on the economics of developing markets, taking place currently in Saudi Arabia, the head of the Central Bank of Turkey, Fahrettin Kati, noted specifically the recent steps regarding the reduction of interest rates. He stated that the central bank has started to gradually reduce rates since December, which led to a decrease in the key rate by 250 basis points both in December and January.
"The central bank has not yet reached automation after two consecutive reductions in interest rates. It is within the authority to stop or change the size of interest rate movements depending on the data," noted Kati this month.
Fahrettin Kati also stated: "The central bank is ready to take measures to mitigate risks arising from the current cycle of reduced interest rates."
