Turkish Central Bank cuts interest rate to 38%

YNP:

Today, Thursday, the Turkish Central Bank reduced its key interest rate by 150 basis points, to 38%.

The move comes within a higher range than previous expectations, with data from the past two months indicating that inflation reduction policy is back on track following inflationary pressures seen over the summer.

One poll expected an average drop of 100 basis points, while some analysts expected a sharp drop of up to 150 points or more.

Last November, inflation recorded an annual increase of 31.1%, with a monthly increase of 0.87%, and both figures were lower than expected.

The central bank has committed to an intermediate inflation target of 16% by the end of 2026, and it expects the inflation rate in 2026 to be between 13% and 19%.