Media: Türkiye's Central Bank may cut interest rate for first time in 8 months

The Central Bank of Türkiye may reduce its interest rate in December for the first time in eight months, Report informs via TASS.

Economists forecast that such a decision might be made following the last monetary policy committee meeting of the year, scheduled for December 26. The rate could be reduced by 150 basis points, from 50% to 48.5%. The interest rate has remained at its current level since May of this year. The Central Bank implemented sharp rate increases to reduce inflation rates.

Although price change dynamics have begun to slow down since autumn, inflation remains at a high level. In early December, the national statistics institute TÜİK released data showing that inflation rates in the country slowed to 47.9% in November, compared to the previous month's figure of 48.58%. In November, prices rose by an average of 2.24%. Over the last 12 months, inflation was 60.45%. However, according to estimates by a group of independent economists, the 12-month inflation rate in the republic was 86.76%, and the group assessed November's inflation rate at 4.06%.

In the foreign exchange market, the dollar continues to strengthen against the lira. On Monday, the American currency began trading at 35.19 lira. Overall, the dollar's strengthening continues.