Inflation pressure in Turkey decreases more than expected, which raises hopes for new interest rate cuts. In December, consumer prices rose by 44.4 percent on an annual basis, compared to 47.1 percent in November. Analysts had, according to Bloomberg, expected an inflation rate of 45.2 percent.
The Turkish central bank implemented its first interest rate cut in two years when it lowered the key interest rate by 250 points to 47.5 percent over the Christmas holidays. Many economists now believe that another interest rate cut may be imminent at the next interest rate decision at the end of January.
Turkey has for a long time struggled with extremely high inflation, a consequence of President Recep Tayyip Erdogan's economic policy, which was intended to stimulate economic growth through low interest rates.
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