Turkey's central bank has reduced borrowing costs for the fourth time this year. Governor Murat Uysal, who has been in office since July, has rolled back most of the interest rate hikes aimed at fighting last year's currency crisis. He says an improvement in inflation has driven the decision. The bank has slashed its benchmark interest rate from 14 to 12 percent, exceeding expectations and marking a 12 percentage point drop in less than six months. Taha Arvas, a financial columnist at the Daily Sabah explains the likely impact on the economy.

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