
Turkey's Central Bank Slashes Interest Rates Amid Inflation Concerns
Turkey's central bank has taken a significant step by lowering its interest rates for the first time in nearly two years, following indications of easing consumer inflation. The news was first reported by Bloomberg, highlighting that the future path of rate policies would be guided by upcoming price data.
The Monetary Policy Committee, under the leadership of Governor Fatih Karahan, decided on Thursday to reduce the one-week repo rate to 47.5% from 50%. This change comes after a prolonged period of eight months where the rates were stagnant. The cut surpassed the forecasted 175-basis-points reduction anticipated by Bloomberg's survey, although the central bank signaled a hawkish tilt by narrowing its rate corridor to 300 basis points from 600.
The committee emphasized a cautious approach, stating, "The Committee will make its decisions prudently on a meeting-by-meeting basis with a focus on the inflation outlook." There was a noted decline in the "underlying trend" of inflation and a slow down in domestic demand towards the year's end. Nevertheless, there was a difference in expectations among analysts regarding the rate cut, with some major financial institutions forecasting smaller reductions.
In related developments, the lira remained relatively stable, registering a minor dip of 0.1% against the dollar, while the Borsa Istanbul 100 Index climbed by 1%. Meanwhile, Turkey plans to increase its minimum wage by 30% in 2025, supporting demand stability amid economic adjustments.
Data from the IndexBox platform indicates that Turkey's economic turbulence, fueled by previous ultra-loose policy periods under President Recep Tayyip Erdogan, remains a backdrop to these monetary shifts. This move comes as part of a broader economic strategy shift following Erdogan's recent election victory, where he appointed a new economic team to adopt more conventional monetary policies.
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1. INTRODUCTION
Making Data-Driven Decisions to Grow Your Business
- REPORT DESCRIPTION
- RESEARCH METHODOLOGY AND AI PLATFORM
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- GLOSSARY AND SPECIFIC TERMS
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2. EXECUTIVE SUMMARY
A Quick Overview of Market Performance
- KEY FINDINGS
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3. MARKET OVERVIEW
Understanding the Current State of The Market and Its Prospects
- MARKET SIZE
- CONSUMPTION BY COUNTRY
- MARKET FORECAST TO 2030
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4. MOST PROMISING PRODUCT
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- MOST CONSUMED PRODUCT
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5. MOST PROMISING SUPPLYING COUNTRIES
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6. MOST PROMISING OVERSEAS MARKETS
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7. GLOBAL PRODUCTION
The Latest Trends and Insights into The Industry
- PRODUCTION VOLUME AND VALUE
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8. GLOBAL IMPORTS
The Largest Importers on The Market and How They Succeed
- IMPORTS FROM 2012–2024
- IMPORTS BY COUNTRY
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9. GLOBAL EXPORTS
The Largest Exporters on The Market and How They Succeed
- EXPORTS FROM 2012–2024
- EXPORTS BY COUNTRY
- EXPORT PRICES BY COUNTRY
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10. PROFILES OF MAJOR PRODUCERS
The Largest Producers on The Market and Their Profiles
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11. COUNTRY PROFILES
The Largest Markets And Their Profiles
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- China
- Japan
- Germany
- United Kingdom
- France
- Brazil
- Italy
- Russian Federation
- India
- Canada
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- Republic of Korea
- Spain
- Mexico
- Indonesia
- Netherlands
- Turkey
- Saudi Arabia
- Switzerland
- Sweden
- Nigeria
- Poland
- Belgium
- Argentina
- Norway
- Austria
- Thailand
- United Arab Emirates
- Colombia
- Denmark
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LIST OF TABLES
- Key Findings In 2024
- Market Volume, In Physical Terms, 2012–2024
- Market Value, 2012–2024
- Per Capita Consumption, By Country, 2018–2024
- Production, In Physical Terms, By Country, 2012–2024
- Imports, In Physical Terms, By Country, 2012–2024
- Imports, In Value Terms, By Country, 2012–2024
- Import Prices, By Country Of Destination, 2012–2024
- Exports, In Physical Terms, By Country, 2012–2024
- Exports, In Value Terms, By Country, 2012–2024
- Export Prices, By Country Of Origin, 2012–2024
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LIST OF FIGURES
- Market Volume, In Physical Terms, 2012–2024
- Market Value, 2012–2024
- Consumption, By Country, 2024
- Market Volume Forecast to 2030
- Market Value Forecast to 2030
- Products: Market Size And Growth, By Type
- Products: Average Per Capita Consumption, By Type
- Products: Exports And Growth, By Type
- Products: Export Prices And Growth, By Type
- Production Volume And Growth
- Exports And Growth
- Export Prices And Growth
- Market Size And Growth
- Per Capita Consumption
- Imports And Growth
- Import Prices
- Production, In Physical Terms, 2012–2024
- Production, In Value Terms, 2012–2024
- Production, By Country, 2024
- Production, In Physical Terms, By Country, 2012–2024
- Imports, In Physical Terms, 2012–2024
- Imports, In Value Terms, 2012–2024
- Imports, In Physical Terms, By Country, 2024
- Imports, In Physical Terms, By Country, 2012–2024
- Imports, In Value Terms, By Country, 2012–2024
- Import Prices, By Country, 2012–2024
- Exports, In Physical Terms, 2012–2024
- Exports, In Value Terms, 2012–2024
- Exports, In Physical Terms, By Country, 2024
- Exports, In Physical Terms, By Country, 2012–2024
- Exports, In Value Terms, By Country, 2012–2024
- Export Prices, 2012–2024