Türkiye Cuts Rates as Inflation Slows

Türkiye’s Central Bank on Thursday cut its key interest rate to 37 per cent as annual inflation continued to slow.

After its policy meeting, the Bank said it reduced the policy rate—the one-week repo auction rate—from 38 per cent to 37 per cent.

The Bank said the underlying trend of inflation fell in December. It added that while leading indicators point to firmer monthly consumer inflation in January, driven mainly by food prices, the underlying inflation trend remains limited.

Official data show that Turkiye’s annual inflation eased to 30.9 per cent in December, marking a fourth consecutive monthly decline and a sharp drop from the 44.4 per cent recorded a year earlier.

However, the figures remain contested. ENAG, a group of independent economists, said its own calculations put year-on-year inflation at 56.14 per cent in December.