{"text":[[{"start":8.44,"text":"Turkey’s central bank cut interest rates for the first time since the outbreak of the Iran war, as easing inflation and weakening consumer confidence gave policymakers room to relax monetary policy."}],[{"start":20.36,"text":"The bank’s monetary policy committee lowered its benchmark one-week repo rate to 36 per cent from 37 per cent, in line with market expectations. Annual inflation fell to 29.7 per cent in September, its lowest rate in almost five years."}],[{"start":36.36,"text":"The Turkish lira was broadly unchanged following the decision."}],[{"start":40.36,"text":"Last month, Turkish capital markets were plunged into crisis following the collapse of investment funds at the centre of an alleged $18bn Ponzi-style scandal. The collapse has jeopardised the savings of hundreds of thousands of investors and raised questions about why regulators failed to intervene earlier."}],[{"start":57.84,"text":"The scandal, popularly dubbed “Fonzi” — a play on the Turkish word for fund and Ponzi scheme — may also have contributed to a sharp decline in consumer confidence. Official data released on Thursday showed the Turkish consumer confidence index fell by 7.7 per cent to reach 84.8 in October, its steepest drop in three years."}],[{"start":78.36,"text":"Weaker domestic demand has also helped contain inflation, despite the surge in oil prices this year following the US-Israeli war in Iran, the bank said."}],[{"start":87.44,"text":"“Recent inflation figures and leading indicators confirm the downward trend . . .[and] suggest that the weak trend in domestic demand continues,” the central bank said following its decision."}],[{"start":98.04,"text":"“On the other hand, the upward risks to the inflation outlook posed by high energy prices, resulting from persistent geopolitical tensions, persist,” it added."}],[{"start":107.2,"text":"Most economists expect another 100 basis-point cut at the bank’s next MPC meeting in December, which would bring the year-end policy rate to 35 per cent. JPMorgan Chase forecasts that inflation levels will end the year at 29.5 per cent."}],[{"start":122.82,"text":"The Fonzi crisis erupted in mid-September after some investment funds struggled to meet investor withdrawals, triggering a wider run. On September 17, the central bank stepped in to support liquidity, boosting repo funding and increasing banks’ borrowing limits 10-fold."}],[{"start":138.28,"text":"The episode came at an awkward time for finance minister Mehmet Şimşek, who has sought to restore confidence in Turkey’s economic management. So far, there are few signs the turmoil has developed into a broader financial crisis."}],[{"start":152.24,"text":"Central bank governor Fatih Karahan said earlier this month that market data showed no risk of contagion from the crisis but pledged further intervention if necessary."}],[{"start":162.16,"text":"“In the event of unexpected developments in the credit and deposit markets, the monetary transmission mechanism will be supported with additional macroprudential measures,” the bank reiterated Thursday."}],[{"start":178.28,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1792712123_1307.mp3"}