Türkiye trims interest rate by 150 basis points, meeting market estimates

By Tuba Sahin

ANKARA (AA) - The Turkish Central Bank on Thursday cut its policy rate by 150 basis points, in line with market expectations.

The one-week repo rate, also known as the policy rate, fell to 9%, down from 10.5%, the bank said in a statement following its Monetary Policy Committee meeting.

The bank stressed that it had decided to end the cycle of rate cuts that started in August as its current level is "adequate.”

At its last meeting in October, the bank cut the rate by 150 basis points to 10.5%, meaning that the key rate has been lowered by 450 basis points, or 4.5 percentage points, since August.

The Central Bank “will continue to use all available instruments decisively within the framework of liraization strategy until strong indicators point to a permanent fall in inflation and the medium-term 5 percent target is achieved in pursuit of the primary objective of price stability," the bank said.

According to the latest data, Türkiye's annual inflation rate was at 85.51% in October, up from 83.45% in September.