Turkish central bank cuts interest volumes by 250 basis units to 47.5 percent
Date
12/28/2024 2:26:45 PM
(MENAFN) The Turkish Central bank reduced interest rates by 250 basis points to 47.5 percent on Thursday, marking its first rate cut in nearly two years.
From May 2023 until March 2024, the bank had raised rates from 8.5 percent to 50 percent in a series of hikes and maintained the rate at that level during its last eight Monetary Policy Committee meetings.
Before Thursday's meeting, Anadolu’s survey of economists had forecasted a 150 basis point rate cut.
Cevdet Yilmaz, Turkey's vice president, praised the country’s progress in combating inflation, stating: "We continue to see the positive results of our economic program in various areas."
He explained that the Central Bank’s decision to reduce the policy rate was driven by Turkey’s significant gains in the disinflation process, noting that the transparent and predictable policy steps, along with strong coordination between monetary and fiscal policies, had been crucial in reaching this point after 22 months.
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