Inflation in Turkey reaches 85% as central bank continues to cut interest rates

According to the Turkish Statistical Institute, the consumer price index (CPI) rose to a 24-year high of 85.51% year-on-year in October after the Central Bank of Turkey further cut the key interest rate despite rising inflation.

On a monthly basis, the CPI rose to 3.54% in October.

Inflation in Turkey has risen sharply since November last year. Turkey’s central bank began easing monetary policy by cutting interest rates, as called for by Turkish President Recep Tayyip Erdogan, in contrast to monetary tightening by central banks around the world.

In the last three months, the Central Bank of Turkey has cut the overall interest rate by 3.50% to 10.50% and announced further rate cuts for the next month. This will be the last step of the current easing cycle.

President Erdog had previously called on Turkey’s central bank to cut interest rates to single digits by the end of the year.

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