![\"Erdogan](\"https:\/\/www.ekathimerini.com\/wp-content\/uploads\/2024\/12\/AP24081418520085-320x200.jpg?v=1735398248\")
Turkey\u2019s President Tayyip Erdogan said on Saturday that there would be more interest rate cuts in 2025 after the central bank cut its key rate by 250 basis points to 47.5% this week.<\/p>\n
The Turkish central bank trimmed the one-week repo rate after an 18-month tightening effort that reversed years of unorthodox economic policies and easy money championed by Erdogan, who has since changed tack to back the programme.<\/p>\n
\u201cPriority in our economy programme is to lower the inflation\u2026 We will hopefully reduce inflation to the required level by using other tools at our disposal in addition to the monetary policy,\u201d Erdogan told members of his AK Party (AKP) in northwestern city of Bursa.<\/p>\n
\u201cWe will definitely start lowering the interest rates. 2025 will be the landmark year for this,\u201d he said.<\/p>\n
\u201cInterest rates will decrease so that inflation will decrease. We will take this step. This is now indispensable for us.\u201d<\/p>\n
Erdogan, who once described interest rates as his \u201cbiggest enemy,\u201d said last month that inflation would fall alongside the interest rate.<\/p>\n
The central bank earlier announced that it had reduced the number of scheduled policy meetings next year to eight from 12 in 2024.<\/p>\n
According to a Reuters poll\u2019s median, the central bank is expected to ease rates to about 28.5% by the end of 2025, with forecasts ranging between 25% and 33%. [Reuters]<\/p>\n<\/p><\/div>\n
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