Turkey's cenbank unexpectedly cuts rate to 13% despite soaring inflation
ANKARA, Aug 18 (Reuters) - Turkey's central bank unexpectedly cut its policy rate by 100 basis points on Thursday to 13%, citing a slowdown in economic activity, moving against a global tightening trend even as inflation surged to near 80% in July.
The bank had held its policy rate at 14% for the past seven months, after cutting by 500 basis points toward the end of last year, even though prices were already rising at that time. The unorthodox policy advocated by President Tayyip Erdogan has left real rates deeply negative.
Turkey's lira declined as much as 18.15 against the dollar after the decision from 17.97 immediately beforehand.
Reporting by Ali Kucukgocmen; Editing by Jonathan Spicer
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