Türkiye's central bank cuts interest rates to 40.5%, exceeding market expectations

According to Jinshi data, the Turkish central bank lowered the one-week repurchase rate from 43% to 40.5% on Thursday, a drop exceeding market expectations. The median market expects a rate cut of 200 basis points. Central Bank Governor Callahan said analysts should not only focus on overall inflation data, as segments show demand-driven price pressures are consistent with a slowdown in inflation. Türkiye's inflation rate in August was 33%, higher than economists' forecast. Still, strong economic growth in the second quarter showed resilience in consumer demand. This prompted major banks such as JPMorgan Chase and Morgan Stanley to lower their rate cuts.