Türkiye’s central bank cuts interest rate to 45%

Türkiye’s central bank cut its key interest rate by 250 basis points to 45 per cent on Thursday, continuing the easing cycle it began last month amid a decline in annual inflation.

The bank indicated it would maintain a tight stance “until price stability is achieved via a sustained decline in inflation,” a slight change from last month’s guidance.

Economists expect a rise in trend inflation in January due to a higher minimum wage. A Reuters poll showed all 13 respondents forecast the rate cut, with expectations for it to hit 30 per cent by year-end.

Attribution: Amwal Al Ghad English, Reuters

Subediting: M. S. Salama

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