The Central Bank of Turkey cuts the benchmark interest rate to push down inflation.

The Central Bank of Turkey announced in a statement that the Monetary Policy Committee has decided to decrease the benchmark interest rate from 43% to 40.5%, a reduction of 250 basis points. The central bank stated that despite the GDP growth rate in the second quarter being higher than expected, domestic demand remains weak. The latest data shows that the current demand environment may help lower inflation, but rising food prices and inertia in the prices of some services continue to create upward pressure on prices. The central bank will continue to maintain a tight monetary policy stance until achieving their price stability target. The central bank also mentioned that the existing macroeconomic framework will support the ongoing decline in inflation, with the medium-term goal of lowering the inflation rate to 5% within a foreseeable period.