Turkey's cenbank says it cut rates because slowdown continued

A logo of Turkey's Central Bank is pictured at the entrance of its headquarters in Ankara
A logo of Turkey's Central Bank is pictured at the entrance of its headquarters in Ankara, Turkey October 15, 2021. REUTERS/Cagla Gurdogan

ISTANBUL, Sept 22 (Reuters) - Turkey's central bank justified its shock interest rate cut on Thursday by citing continued indications of an economic slowdown in the third quarter due to a decline in foreign demand.

The bank unexpectedly cut its policy rate by 100 basis points to 12%.

Its policy committee said that financial conditions must remain supportive "in a period of increasing uncertainties regarding global growth, as well as escalating geopolitical risk."

Reporting by Ezgi Erkoyun and Ali Kucukgocmen; Writing by Daren Butler; Editing by Jonathan Spicer

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