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Turkey's central bank lowers benchmark interest rate to 45%

  • Turkey's central bank has lowered its benchmark interest rate by 2.5 percentage points to 45%, marking its second rate cut in two months as inflation eases.
  • Annual inflation in Turkey decreased to 44.38% in December 2024, down from 47.09% the previous month, although independent economists suggest the real rate is higher.
  • President Recep Tayyip Erdogan's unconventional economic policies previously contributed to soaring inflation, but a new economic team is now reversing these policies.
  • The central bank plans to continue easing rates, indicating a temporary rise in January inflation, while maintaining a tight stance until price stability is achieved.
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  • 36% of the sources lean Left, 36% of the sources are Center
37% Center
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