People pass by a currency exchange office in Ankara, Türkiye, on July 24, 2025. Türkiye's central bank on Thursday cut its key interest rate by 300 basis points, from 46 percent to 43 percent, starting a new easing cycle. (Mustafa Kaya/Handout via Xinhua)
ANKARA, July 24 (Xinhua) -- Türkiye's central bank on Thursday cut its key interest rate by 300 basis points, from 46 percent to 43 percent, starting a new easing cycle.
"The underlying trend of inflation remained flat in June. Leading indicators suggest a temporary rise in monthly inflation in July due to month-specific factors," the bank's Monetary Policy Committee said in a statement.
Recent data indicate that the disinflationary impact of demand conditions has strengthened, the statement said, yet warning that inflation expectations and pricing behavior continue to pose risks to the disinflation process.
Türkiye has been grappling with rising inflation for years. From June 2023 to March 2024, the central bank raised its key interest rate from 8.5 percent to 50 percent to tighten monetary policy and stepped into an easing cycle at the end of last year, supported by improving inflation indicators.
However, the central bank raised its key interest rate by 350 points in mid-April, from 42.5 percent to 46 percent, reversing its previous easing cycle over inflationary pressure.
Türkiye's annual consumer inflation eased more than anticipated in June, slowing to 35.05 percent, according to official data. ■
A man walks past Türkiye's central bank in in Ankara, Türkiye, on July 24, 2025. Türkiye's central bank on Thursday cut its key interest rate by 300 basis points, from 46 percent to 43 percent, starting a new easing cycle. (Mustafa Kaya/Handout via Xinhua)
A man withdraws cash in Ankara, Türkiye, on July 24, 2025. Türkiye's central bank on Thursday cut its key interest rate by 300 basis points, from 46 percent to 43 percent, starting a new easing cycle. (Mustafa Kaya/Handout via Xinhua)
