Turkey’s central bank has reduced its key interest rate to 37 per cent, citing slowing inflation trends.
Okay News reports that the bank made the decision at a policy meeting on Thursday, marking a further easing amid four consecutive months of declining consumer prices.
The underlying trend of inflation declined in December, the bank stated, though leading indicators suggest a limited rise in monthly consumer inflation in January, driven by food prices.
Turkey’s annual inflation slowed to 30.9 per cent in December, down from 44.4 per cent a year earlier, according to official figures.
However, independent economists from ENAG dispute the data, estimating year-on-year inflation at 56.14 per cent for the same period.
The rate cut reflects the bank’s assessment that inflationary pressures are easing, allowing for monetary policy adjustment.
Turkey, a major emerging market economy bridging Europe and Asia, has faced high inflation in recent years amid currency volatility and external pressures.
The central bank’s move aims to support economic activity while monitoring price stability.
Previous rate adjustments have been part of efforts to balance growth and inflation control in the face of global economic uncertainties.
The decision could influence borrowing costs and consumer spending in Turkey’s economy.
