Turkey cuts key rate by 250 basis points, to 47.5%

Central bank loosens grip for first time in nearly 2 years on 'flat' inflation

20241226 Turkey economy

The central bank's Monetary Policy Committee says indicators suggest inflation is likely to decline in December as demand slows. © Reuters

ANKARA (AP) -- Turkey's central bank lowered its key interest rate by 2.5 percentage points, to 47.5%, on Thursday, carrying out its first rate cut in nearly two years as it tries to control soaring inflation.

Citing slowing inflation, the bank's Monetary Policy Committee said it was reducing its one-week repo rate to 47.5% from 50%.

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