ANKARA, Oct. 23 (Xinhua) -- The Turkish central bank on Thursday slowed its monetary easing cycle, cutting its policy rate by 100 basis points to 39.5 percent from 40.5 percent, in line with market expectations.
In a statement following a meeting of its rate-setting Monetary Policy Committee (MPC), the bank said that the underlying trend of inflation increased in September, noting that recent price developments, particularly in food, have heightened risks to the disinflation process through inflation expectations and pricing behavior.
Türkiye's annual inflation rose to 33.29 percent in September, up from August's 32.95 percent, marking the first monthly uptick since May 2024.
The latest move follows sharper cuts in previous months, including reductions of 250 basis points in September and 300 basis points in July.
The Turkish government expects inflation to cool to 28.5 percent this year and to 16 percent in 2026 before dropping to single digits the following year. ■
