Interest Rates Drive Turkey Central Bank Cut to 38%

Turkey’s central bank announced a interest rate cut of 1.5%, lowering the benchmark rate to 38%, following signs of easing inflationary pressures.

In a statement released by the Monetary Policy Committee, officials said the decision was based on a broad assessment of inflation indicators and economic trends, stressing continued vigilance over price stability and financial markets.

Economists say the interest rate reduction aims to support economic activity and credit growth while carefully managing inflation risks.

Global Monetary Policy Backdrop

The move comes alongside global monetary easing, as the US Federal Reserve cut its interest rate by 0.25% for the third consecutive meeting, bringing the target range to 3.5%–3.75%.

These actions highlight a broader trend among central banks toward easing policies to bolster growth while keeping inflation in check.