Benchmark 1-week repo rate lowered to 43% from 46%
The Turkish Central Bank on Thursday lowered its policy rate by 300 basis points.
The benchmark one-week repo rate was lowered from 46% to 43%
The bank said the underlying trend of inflation remained flat in June, with leading indicators suggesting a temporary rise in monthly inflation in July due to month-specific factors.
"Recent data indicate that the disinflationary impact of demand conditions has strengthened," it added.
The bank also underlined that the potential impact of geopolitical developments and rising trade protectionism on the disinflation process are being closely monitored.
Türkiye's annual inflation rate in June eased for the 13th consecutive month to 35.05%, its lowest reading since December 2021.
From May 2023 until last March, the bank raised the rate from 8.5% to 50% and then kept it constant until its meeting last December, when it lowered the rate 250 basis points to 47.5%.
The bank cut the benchmark rate at its December, January, and March meetings from 50% to 42.5%. At the April meeting, in a surprise move, the bank raised the rate 350 basis points to 46%, before leaving it unchanged at the June meeting.
