MNI CBRT WATCH: 1W-Repo Rate Lowered 250Bps to 47.5%
MNI (LONDON) - The Central Bank of the Republic of Turkey cut key interest rates from 50% to 47.5% on Thursday, with annual inflation seen falling further in December from November’s 47.09%. (See MNI EM POLICY: CBRT Likely To Cut In December As Past Hikes Bite)
Interest rates on overnight borrowing and lending were also lowered 150 basis points below and above the one-week repo auction rate, respectively.
Domestic demand is seen continuing its disinflationary trend, with core goods inflation remaining low and the decline in services inflation becoming more apparent, the CBRT said in a statement. (See MNI EM INTERVIEW: CBRT Dec Cut Possible, Real Rates Key-Demiralp)
However inflation expectations and pricing continue to pose upside risks to the inflation outlook despite recent improvement. (See MNI EM INTERVIEW: CBRT To Cut 2-3 Times By Feb-Cangoz)
On Wednesday the CBRT released a document outlining its monetary policy strategy for 2025 in which it said it intends to reduce the annual number of rate-setting meetings from 12 to eight.