Turkey’s Central Bank cuts interest rates by 2 percent in the last meeting of the year

The Central Bank cut interest rates again and the Central Bank Monetary Policy Committee reduced the policy rate by 2 points to 12 percent. With this latest cut, the Central Bank has decreased interest rates by 12 points, this year.

The following statements were made in the statement made by the Board:

“Recent data show that the recovery in economic activity continues. Despite the improvement in the sectoral expansion of economic activity, investments remain weak.

While the positive effects of the developments in competitiveness continue, the weakening in the global growth outlook partially slows foreign demand. While the contribution of net exports to growth declined, the recovery in the economy is expected to continue with the disinflation process and improvement in financial conditions.

The current account balance, which has improved significantly in the recent period, is expected to follow a moderate course in the upcoming period with the contribution of the measures taken.

The Committee considers that the continuation of the downward trend in inflation is of great importance in terms of the decline in the country’s risk premium, the decline in long-term interest rates and the recovery in the economy.

The cautious stance in monetary policy must be maintained in order to achieve the decline in inflation in line with the targeted path. In this context, the level of monetary tightness will be determined in a way to ensure the continuation of the decline in inflation, taking into account the indicators of the main trend. The Central Bank will continue to use all of its tools for price stability and financial stability.”