Ankara: The Turkish Central Bank on Thursday cut interest rates by 2.5 percentage points, days after announcing official statistics showing a slowdown in inflation that has eroded households’ purchasing power. The bank’s Monetary Policy Committee said it cut the interest rate from 45 percent to 42.5 percent.
According to Qatar News Agency, this is the third consecutive interest rate cut in Turkiye, and comes after official data showed the annual inflation rate fell below 40 percent for the first time in about two years. It noted that the bank will, however, review inflation trends and adjust interest rates cautiously during upcoming meetings.
The inflation rate recorded 39.05 percent in February, after reaching 42.12 percent in January, according to data from the Turkish Statistical Office.