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Turkey cuts key interest rate to 37% as inflation slows
The Central Bank of the Republic of Turkey reduced the policy rate to 37%, continuing gradual easing as inflation slows from a 75.4% peak in May 2024, officials said.
- On January 22, the Central Bank of the Republic of Turkey's Monetary Policy Committee cut the one-week repo policy rate by 100 basis points to 37% at its first 2026 meeting in Ankara.
- TUIK's December reading showed consumer price inflation eased to 30.89%, while the MPC cited falling underlying inflation trends and domestic demand support.
- The committee also adjusted short-term rates, cutting overnight lending rate to 40% and overnight borrowing rate to 35.5%; Thursday's 100-basis-point cut followed the December 150-basis-point cut.
- Markets reacted with stability as USD/TRY remained under control, eurobond investors stayed strong, and five-year credit default swaps tested the 200-level, while loan markets eased and further cuts toward 28% by end-2026 are projected.
- The MPC will meet again on March 12, and on February 12, the central bank will publish its quarterly inflation report with updated forecasts, maintaining a 13-19% forecast range and a 16% interim target.
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26 Articles
26 Articles
Coverage Details
Total News Sources26
Leaning Left3Leaning Right4Center6Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 23%
C 46%
R 31%
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