Turkey's Central Bank Cuts Rates 150 Basis Points to 38% on 'Improving' Inflation Signals
Turkey's central bank delivered a larger-than-expected 150 basis point rate cut to 38%, citing improved inflation data and easing food prices, though market skepticism persists over the ambitious 16% inflation target by end-2026.
Turkey's 
TR central bank delivered a larger-than-expected monetary policy easing on Thursday, cutting its key policy interest rate by 150 basis points to 38%, signaling growing confidence that disinflation is back on track after summer volatility derailed the trajectory.
TR central bank delivered a larger-than-expected monetary policy easing on Thursday, cutting its key policy interest rate by 150 basis points to 38%, signaling growing confidence that disinflation is back on track after summer volatility derailed the trajectory.The move, at the higher end of market expectations, marks an acceleration in the rate-cutting cycle that resumed in July following a brief policy reversal earlier in the year due to political turmoil. The central bank's policy-making committee cited improving inflation expectations and pricing behavior, though acknowledged these factors continue to pose risks to the disinflation process.
