Last interest rate decision of the year announced

The central bank's announcement on interest rates said that the board convened under the chairmanship of Yaşar Fatih Karahan decided to reduce the key interest rate to 38 percent.

It was also noted that the board also reduced the central bank's overnight interest rate from 42.5 percent to 41 percent and the central bank's overnight interest rate from 38 percent to 36.5 percent.

The following statements were included in the announcement:

In November, consumer inflation was lower than expected due to food price developments. The main trend in inflation fell slightly in October and November after rising in September. In the third quarter, quarterly growth was higher than expected. Leading indicators for the latest quarter suggest that demand conditions continue to support the disinflation process. Although inflation expectations and price behavior show signs of improvement, they continue to represent a risk factor for the disinflation process.

The tight monetary policy stance, maintained until price stability is achieved, will reinforce the disinflation process through demand, exchange rate and expectations channels. The steps to be taken by the Board regarding the key interest rate; It will determine inflation outcomes, taking into account its key trends and expectations, in line with the interim targets and in a way that ensures the rigor required to combat inflation. The size of the steps is reviewed using a meeting-based and cautious approach that focuses on the inflation outlook. If the inflation outlook deviates significantly from the interim targets, the monetary policy stance will be tightened.

In the event of unforeseen developments in the credit and deposit markets, the monetary transmission mechanism is supported by additional macroprudential steps. Liquidity conditions continue to be closely monitored and liquidity management tools continue to be used effectively.

The Board will make policy decisions to ensure the monetary and financial conditions that allow inflation to reach the 5 percent target in the medium term. The Board will make its decisions in a predictable, data-driven and transparent framework.

The summary of the Monetary Policy Committee meeting will be published within five working days.