Central Bank of Türkiye lowers policy rate to 37%

At today's meeting of the Monetary Policy Committee of the Central Bank of Türkiye (CBT), it was decided to reduce the policy rate (the one-week repo auction rate) from 38% to 37%, which marks the lowest level in the past 26 months, Report informs, citing the CBT.

The meeting was chaired by CBT Governor Fatih Karahan.

During the session, the Committee has also lowered the Central Bank overnight lending rate from 41 percent to 40 percent and the overnight borrowing rate from 36.5 percent to 35.5 percent.

"The underlying trend of inflation declined in December. While leading indicators suggest that monthly consumer inflation has firmed in January, led by food prices, the rise in the underlying trend of inflation is limited. Indicators for the last quarter point to demand conditions that continue to support the disinflation process, albeit at a moderating pace. While showing signs of improvement, inflation expectations and pricing behavior continue to pose risks to the disinflation process," reads the statement of CBT.