The central bank cuts interest rates again and has indicated that further cuts will follow.

The central bank cuts interest rates again and has indicated that further cuts will follow.

The central bank cut Turkish interest rates for the third month in a row. The rate was cut by 0.5% and the base rate now stands at 16.25%. The bank has indicated that further cuts will follow through “cautious and measured lowering”.

The rate cut has already had a small effect on the exchange rate with the value of the Lira falling against major currencies.

The latest reduction will be a further blow to savers who will see their monthly interest payments reduce.

Next week we’ll be looking at ex-pat personal finances and at the pros and cons of ‘living off the interest in the sun’.

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