Turkish Central Bank lowers policy rate to 10.5%

By Gokhan Ergocun

ISTANBUL (AA) – Türkiye's Central Bank on Thursday lowered its policy interest rate by 150 basis points to 10.5%.

Geopolitical risks on global economy are increasing and recession expectations are getting stronger on a global scale, the bank said in a press release.

"Increase in inflation is driven by the lagged and indirect effects of rising energy costs resulting from geopolitical developments, effects of pricing formations that are not supported by economic fundamentals, strong negative supply shocks caused by the rise in global energy, food and agricultural commodity prices," it said.

The bank added: "The Committee expects disinflation process to start on the back of measures taken and decisively implemented for strengthening sustainable price and financial stability along with the resolution of the ongoing regional conflict."

The annual inflation rate in Türkiye was at 83.45% in September.

The bank said it plans to end the cut cycle after another rate cut in the next meeting.

In the previous monetary policy meeting last month, the bank lowered the policy rate by 100 basis points to 12%.