Turkey’s central bank makes three-point cut to interest rates in return to easing

Turkey’s central bank on Thursday cut its key interest rate by three points points to 43%, returning down the path of monetary easing.

The step marked the first rate reduction since April, when the bank hiked rates to 46% in the wake of the controversial arrest of Istanbul Mayor Ekrem Imamoglu, which sent the Turkish lira tumbling.

The move also suggests confidence in the monetary policy committee’s work toward tackling inflation, which sat at 35.05% in June but has been steadily decreasing.

“The tight monetary policy stance, which will be maintained until price stability is achieved, will support the disinflation process through moderation in domestic demand, real appreciation in Turkish lira, and improvement in inflation expectations,” the central bank said in a statement accompanying the decision.

This breaking news story is being updated.