ANKARA, Oct. 22 (Xinhua) -- Türkiye's central bank cut its benchmark policy rate by 100 basis points to 36 percent on Thursday, resuming monetary easing for the first time since January as inflation continued to cool.
The latest cut follows a previous 100-basis-point cut to 37 percent earlier this year.
The bank said in its statement that "despite monthly fluctuations, recent inflation figures and leading indicators confirm the deceleration in the underlying trend of inflation."
Yet it cautioned that "elevated energy prices due to ongoing geopolitical tensions continue to pose an upside risk to the inflation outlook", signaling a careful approach to future policy.
Türkiye's annual inflation eased to 29.73 percent in September, marking a fourth straight month of slowing price growth. The relief, analysts say, provides some support for businesses burdened by high borrowing costs.
Despite this progress, economic challenges persist. The government recently raised its year-end inflation forecast from 16 percent to 28.4 percent, citing the economic fallout of the conflict in the Middle East.
As a major energy importer, Türkiye has struggled with persistently high inflation in recent years, though annual inflation has fallen substantially from its peak of 85.5 percent in late 2022. ■
