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Turkish central bank cuts benchmark interest rate from 47.5% to 45%

24 Jan '25
1 min read
Turkish central bank cuts benchmark interest rate from 47.5% to 45%
Pic: Adobe Stock

Insights

  • Turkey's central bank yesterday reduced its benchmark one-week repo rate from 47.5 per cent to 45 per cent in its second rate cut in the months in which inflation was easing as per official figures.
  • In its last reduction in December, the bank had also cut the rate by 2.5 percentage points.
  • It reaffirmed its commitment to controlling soaring inflation.
  • Core goods inflation remains relatively low.
Turkey’s central bank’s monetary policy committee yesterday reduced its benchmark one-week repo rate from 47.5 per cent to 45 per cent in its second rate cut in the months in which inflation was easing as per official figures.

In its last reduction in December 2024, the bank had also cut the rate by 2.5 percentage points.

It reaffirmed its commitment to controlling soaring inflation. Core goods inflation, however, remains relatively low.

“While inflation expectations and pricing behavior tend to improve, they continue to pose risks to the disinflation process,” the bank said in a statement.

Annual inflation in Turkiye slowed to 44.38 per cent in December last year from 47.09 per cent in November.

The tight monetary stance will be maintained until price stability is achieved via a sustained decline in inflation, the bank added.

ALCHEMPro News Desk (DS)

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