Economic reports and sectoral analysis from Turkey's statistical institute

Turkey's Central Bank Cuts Key Rate by 250 Basis Points to 47.5%, First Cut Since February 2023 as Inflation Eases to 47.09%

Dec 26, 2024, 11:01 AM

Turkey's central bank has cut its key policy rate by 250 basis points to 47.5%, marking its first reduction in nearly two years. This decision comes as inflation shows signs of easing, with the latest figures indicating an inflation rate of 47.09%. Major banks had been divided on the anticipated size of the cut, with predictions ranging from 150 to 250 basis points. The rate cut aligns with market expectations, reflecting a 'flat' underlying trend of inflation observed in November. The last rate adjustment prior to this was in February 2023, when the rate was held steady at 50%. The central bank's decision is seen as a response to the changing economic landscape and aims to stimulate growth following a prolonged period of high rates.