Türkiye’s central bank cut its one-week repo rate by 100 basis points to 36% on Thursday, ending five meetings without a change as it cited signs of easing underlying inflation.
The Central Bank of the Republic of Türkiye (CBRT) also lowered its overnight lending rate to 39% from 40% and its overnight borrowing rate to 34.5% from 35.5%.
The CBRT’s October survey showed a modified-mean expectation of 36% for the first upcoming meeting. Before the decision, FXStreet reported that Societe Generale expected rates to stay at 37%, a forecast covered in EconoTimes’ earlier account of the rate-hold call.
The committee said price data and forward-looking measures pointed to a slower underlying pace of inflation, despite month-to-month fluctuations. It cited muted domestic demand and said supply disruptions had not fed strongly into prices at home. Elevated energy prices amid geopolitical tensions remained an upside risk to inflation, it said.
The CBRT said it would maintain restrictive policy until price stability is secured. It will weigh realized and expected inflation along with the underlying trend when setting policy, with the timing and size of future moves guided by the inflation outlook. The committee said a material worsening in that outlook over an extended period would prompt tighter policy.
The CBRT calendar lists Oct. 30 for the meeting summary and Dec. 10 for the next policy decision.
