Erdoganomics: Turkey cuts rate again, while raising minimum wage 50%

President continues with his risky bet on weak lira

The meltdown of the lira is quickly pushing up the cost of living in Turkey through a greater dependence on imported goods and materials. © Reuters

SINAN TAVSAN, Nikkei staff writer

December 16, 2021 20:17 JST

Updated on December 17, 2021 00:02 JST

ISTANBUL -- Turkey's central bank announced on Thursday it was slashing its key benchmark rate by 100 basis points to 14% despite a recent plunge in the lira.

The central bank wrapped up the monetary easing cycle it embarked on since September by lowering the interest rate again, taking total cuts to 500 basis points.