A woman walks past Türkiye's central bank in Ankara, Türkiye, Dec. 11, 2025. (Mustafa Kaya/Handout via Xinhua)
ANKARA, Dec. 11 (Xinhua) -- Türkiye's central bank cut its benchmark one-week repo rate by 150 basis points to 38 percent on Thursday, the bank's Monetary Policy Committee (MPC) said.
The bank said November consumer inflation came in below expectations after a sharper-than-expected drop in food prices. It added that the underlying inflation trend eased slightly in October and November following an uptick in September.
The MPC said third-quarter GDP growth beat forecasts and that indicators for the final quarter show demand still supporting disinflation. But it warned that inflation expectations and pricing behavior continue to pose risks.
The committee said it would maintain a tight policy stance until price stability is achieved. "The tight stance will strengthen the disinflation process through demand, exchange-rate, and expectations channels," it said.
It reiterated that policy decisions are made meeting by meeting and said it would tighten again if inflation strays significantly from interim targets.
Türkiye has struggled with high inflation since a 2018 currency crisis, which has squeezed households and businesses. Annual inflation eased to 31.65 percent in November from 32.87 percent in October, extending a gradual slowdown. The central bank has been cutting its benchmark rate since mid-2025. ■
People shop at a local market in Ankara, Türkiye, Dec. 11, 2025. (Mustafa Kaya/Handout via Xinhua)
People shop at a local market in Ankara, Türkiye, Dec. 11, 2025. (Mustafa Kaya/Handout via Xinhua)