Turkey's central bank announced a significant reduction in its key interest rate, lowering it by 2.5 percentage points to 45% on Thursday. This marks the second consecutive rate cut in as many months, with the previous cut also being 2.5 percentage points in December.
The Monetary Policy Committee made the decision to reduce the benchmark one-week repo rate from 47.5% to 45%, citing official figures that indicate a slight easing in inflation. Despite this rate cut, the central bank emphasized its commitment to managing the high inflation that has been impacting households across Turkey, making it challenging for many to afford basic necessities.
