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Turkey's central bank shocks with rate cut of 100 basis points

As inflation nears 80%, few expected the big slash in key rate to 13%

Inflation in Turkey is nearing 80% and seen to continue rising toward 90% by year-end.   © Reuters

ANKARA (Reuters) -- Turkey's central bank shocked markets on Thursday by cutting its policy rate by 100 basis points to 13%, saying it needed to keep driving economic growth despite inflation surging to nearly 80% and a monetary tightening trend among its peers worldwide.

The lira dropped more than 1% as the bank took its latest step down the unorthodox policy path advocated by President Recep Tayyip Erdogan.

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