Ankara: The Central Bank of the Republic of Trkiye has lowered its policy rate by 250 basis points, aligning with market forecasts. The adjustment reduces the benchmark one-week repo rate from 45% to 42.5%, as announced on Thursday. According to Anadolu Agency, the central bank emphasized that its tight monetary policy would persist until a sustained reduction in inflation ensures price stability. The bank stated that the policy rate would be set to maintain the necessary tightness for the projected disinflation path, considering both realized and expected inflation along with the underlying trend. The central bank highlighted its cautious approach, noting that decisions would be made on a meeting-by-meeting basis, primarily focusing on the inflation outlook. It further stated that monetary policy tools would be deployed effectively if there is a significant and persistent deterioration in inflation. Trkiye's annual inflation rate in January decreased for the ninth consecutive month to 39.05%, marking the lowest level since June 2023.