Türkiye’s Inflation Drops Sharply, Paving Way for Interest Rate Cuts

Turkey's monthly inflation rate fell below 1% in November for the first time in two and a half years. This significant slowdown signals a major shift in the country's long-running cost-of-living crisis. The annual inflation rate also dropped sharply, falling to its lowest level in four years. This decline follows a long period of aggressive interest rate hikes by the Turkish Central Bank. Financial experts now predict the central bank will reverse course. They forecast a substantial interest rate cut of 100 to 150 basis points at its next meeting in December. A basis point is one-hundredth of a percentage point. Lower borrowing costs aim to stimulate economic growth. The expected policy shift reflects the bank's growing confidence that high inflation is being brought under control.