ANKARA, Dec. 26 (Xinhua) -- Türkiye's central bank on Thursday cut its benchmark interest rate by 250 basis points to 47.5 percent, marking its first rate cut after keeping rates steady for months.

"The underlying trend of inflation was essentially flat in November. Leading indicators point to a decline in the underlying trend in December," the bank's Monetary Policy Committee said in a statement, adding, "Indicators for the last quarter suggest that domestic demand, standing at disinflationary levels, continues to slow down."

"The decisiveness regarding tight monetary stance is bringing down the underlying trend of monthly inflation and strengthening the disinflation process through moderation in domestic demand, real appreciation in Turkish lira, and improvement in inflation expectations," the statement noted.

However, the bank said its tight monetary stance will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is observed and inflation expectations converge to the forecast range.

Türkiye has been grappling with rising inflation for years. From June 2023 to March this year, the central bank raised its key interest rate from 8.5 percent to 50 percent to tighten monetary policy and had kept the interest rate unchanged since March. Enditem

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