Turkish Central Bank Slows Pace of Rate Cuts as Food Inflation Picks Up — Update

Turkey's central bank has cut its benchmark interest rate to 37.0% from 38.0%, marking a slower pace of rate cuts amid rising food inflation. This is the fifth consecutive reduction, but economists had anticipated a more significant cut to 36.5%. While inflation reached 30.9% in December, the bank noted that food prices are driving monthly consumer inflation higher. Analysts suggest that the disinflation process may be stalling, but expect inflation to continue declining throughout the year, with potential for renewed easing in monetary policy if conditions improve.