Turkey cuts interest rates again despite calls for course change

Business leaders issue rare critique of Erdogan on inflation and currency

Turkish President Recep Tayyip Erdogan has ramped up pressure on the central bank to stimulate the economy. © Reuters

MOMOKO KIDERA, Nikkei staff writer

October 21, 2021 22:40 JST

Updated on October 22, 2021 00:06 JST

ISTANBUL -- The Turkish central bank cut its key interest rate for the second straight meeting on Thursday, pushing the lira to a record low even as business leaders question the direction of monetary policy under President Recep Tayyip Erdogan.

The bank lowered the one-week repo rate to 16% from 18%, despite the lira plumbing new lows over the past several weeks. The Turkish currency weakened by nearly 3% against the dollar at one point following the Thursday decision.