The Central Bank of the Republic of Türkiye (CBRT) has announced a 100 basis point cut in its benchmark one-week repo auction rate, lowering it from 40.5 percent to 39.5 percent, as part of its latest monetary policy decision.

In a statement issued after Thursday’s Monetary Policy Committee (MPC) meeting, the Bank also reduced the overnight lending rate from 43.5 percent to 42.5 percent and the overnight borrowing rate from 39 percent to 38 percent.

The MPC noted that the underlying trend of inflation rose in September, with recent data showing that while demand conditions remain supportive of disinflation, the pace of improvement has slowed. “Risks posed by recent price developments, particularly in food, to the disinflation process through inflation expectations and pricing behavior have become more pronounced,” the Committee said.

The statement emphasized that the Central Bank will maintain a tight monetary policy stance until price stability is firmly established. “This stance will strengthen the disinflation process through demand, exchange rate, and expectation channels,” it added.

The CBRT reaffirmed that its policy rate decisions will continue to be guided by realized and expected inflation and its underlying trend. The Bank also reiterated that it is prepared to tighten monetary policy further if inflation deviates significantly from its interim targets.

In the event of unexpected developments in credit and deposit markets, the CBRT said it will support the monetary transmission mechanism through additional macroprudential measures and effective liquidity management tools.

The Central Bank underscored its commitment to achieving a 5 percent inflation target in the medium term, stating that future decisions will be taken “in a predictable, data-driven, and transparent framework.”

A summary of the Monetary Policy Committee meeting is expected to be published within five working days. (ILKHA)