Turkey cuts interest rate – to 38 percent

The Monetary Policy Committee, led by head Fatih Karahan, lowered the key interest rate from 39.5 percent to 38 percent on Thursday.

“In November, inflation was lower than expected due to an unexpected decline in food prices,” the Monetary Policy Committee said in a statement.

However, it stressed the importance of caution, saying that inflation expectations and price behavior continue to pose risks.