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Turkey's central bank cut its key interest rate by 250 basis points to 45% on Thursday, in line with expectations, carrying on an easing cycle it launched last month as annual inflation continues to fall.
In a Reuters poll, all 13 respondents forecast a cut to 45% from 47.5% in the one-week repo rate. They expect it to hit 30% by year end, according to the poll median.
In December, the bank cut rates for the first time after 18-month tightening effort that reversed years of unorthodox economic policies and easy money championed by President Tayyip Erdogan, who has since supported the steps.
To tackle inflation that has soared for years, the central bank had raised its policy rate by 4,150 basis points in total since mid-2023 and kept it at 50% for eight months before beginning easing.
Annual inflation dipped to 44.38% last month in what the central bank believes is a sustained fall toward a 5% target over a few more years. It topped 75% in May last year.
A 30% administered rise in the minimum wage for 2025 was lower than workers had requested, though it is expected to boost monthly inflation readings this month and next, economists say.
The central bank has eight monetary policy meetings set for this year, down from 12 last year.
(Reporting by Ezgi Erkoyun; Editing by Jonathan Spicer)