Breaking News: Central Bank announces the final interest rate decision of the year! Markets were waiting with anticipation...

The Central Bank of the Republic of Turkey (TCMB) Monetary Policy Committee (PPK) convened under the chairmanship of Fatih Karahan.

Following the critical meeting, the interest rate decision, which the markets had been closely monitoring, was announced.

The Central Bank PPK cut the policy rate by 150 basis points, bringing it down to 38 percent.

The Committee also reduced the overnight lending interest rate from 42.5 percent to 41 percent, and the overnight borrowing interest rate from 38 percent to 36.5 percent.

The following statements were included in the decision text:

''In November, consumer inflation was lower than expected due to developments in food prices. The underlying trend of inflation has declined slightly in October and November following the increase in September. Quarterly growth in the third quarter was higher than projected. Leading indicators for the final quarter indicate that demand conditions continue to support the disinflation process. While inflation expectations and pricing behaviors show signs of improvement, they continue to be a risk factor for the disinflation process.

The tight monetary policy stance, which will be maintained until price stability is achieved, will strengthen the disinflation process through demand, exchange rate, and expectation channels. The Committee will determine the steps to be taken regarding the policy rate in a way that ensures the tightness required by disinflation, in line with intermediate targets, by taking into account inflation realizations, its underlying trend, and expectations. The magnitude of the steps is reviewed with a cautious, meeting-based approach focused on the inflation outlook. In the event of a significant divergence of the inflation outlook from the intermediate targets, the monetary policy stance will be tightened.

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

The Committee will determine its policy decisions in a way that will provide the monetary and financial conditions necessary to reach the 5 percent inflation target in the medium term. The Committee will take its decisions within a predictable, data-driven, and transparent framework.''