By Kyle Morris

Turkey's central bank on Thursday cut its benchmark interest rate after President Recep Tayyip Erdogan last week discharged three top officials.

The central bank cut its key rate to 16% from 18%. The benchmark rate was forecast to be cut to 17% by FactSet.

Mr. Erdogan last week dismissed central bank deputy governors Semih Tumen and Ugur Namik Kucuk, as well as Monetary Policy Committee member Abdullah Yavas.

"The committee decided to reduce the policy rate by 200 basis points to 16%. Nevertheless, the committee assessed that, till the end of the year, supply-side transitory factors leave limited room for the downward adjustment to the policy rate," the bank said.

Turkey's inflation rate accelerated on an annual basis in September, as the consumer price index rose 19.58% on year in the month compared with 19.25% in August.

Write to Kyle Morris at kyle.morris@dowjones.com

(END) Dow Jones Newswires

October 21, 2021 07:28 ET (11:28 GMT)