The Central Bank of the Republic of Turkey (TCMB) has cut the policy rate for the third consecutive time, lowering it to 42.5%. Over the past three months, TCMB has implemented a total of 750 basis points in rate cuts, gradually reducing the rate from the 50% peak reached in November 2023.
In its statement regarding the decision, the Central Bank noted that inflation showed a declining trend in February, with core goods inflation maintaining a relatively low course. Additionally, price increases in the services sector slowed down after a surge in January.
The bank emphasized that although inflation expectations have improved, pricing behavior still poses a risk. It reaffirmed its commitment to maintaining a tight monetary policy and stated that all necessary tools would be used until inflation reaches the targeted level.
