Turkey's top financial regulator has cut its key interest rate from 50% to 47.5%, a 2.5 percentage point adjustment.
The decision comes as a surprise given the Central Bank's previous tight monetary policy aimed at combating high inflation, which has been a major economic problem in Turkey for many years. The high-interest policy implemented over the past two years was aimed at curbing inflation and stabilizing the Turkish lira.
In a statement, the Central Bank said the rate cut was aimed at stimulating economic activity and creating favorable conditions for domestic growth. The decision also reflects the regulator's new strategy, which includes adapting monetary policy in response to current economic conditions and slowing inflationary pressures.
However, economists reacted to this decision in a contradictory way. Some experts expressed concerns that easing monetary policy could lead to increased pressure on the national currency. Others believe that reducing interest rates will give impetus to increased investment and revitalization of the economy.
In any case, this change occurred against the background of a general trend in Turkey to reconsider economic policies in the face of global instability and inflationary risks.
Earlier we wrote that a new level of the minimum wage (minimum wage) was established in Turkey for 2025. As the end of the year approached, millions of Turkish workers were eagerly awaiting a decision to increase the minimum wage. In the face of rising inflation, this issue is no less relevant for the country's citizens.