---
title: "Turkish Central Bank Slows Pace of Rate Cuts as Food Inflation Picks Up — Update"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/273370671.md"
description: "Turkey's central bank has cut its benchmark interest rate to 37.0% from 38.0%, marking a slower pace of rate cuts amid rising food inflation. This is the fifth consecutive reduction, but economists had anticipated a more significant cut to 36.5%. While inflation reached 30.9% in December, the bank noted that food prices are driving monthly consumer inflation higher. Analysts suggest that the disinflation process may be stalling, but expect inflation to continue declining throughout the year, with potential for renewed easing in monetary policy if conditions improve."
datetime: "2026-01-22T12:15:49.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/273370671.md)
  - [en](https://longbridge.com/en/news/273370671.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/273370671.md)
---

# Turkish Central Bank Slows Pace of Rate Cuts as Food Inflation Picks Up — Update

By Ed Frankl

Turkey's central bank reduced borrowing costs for a fifth meeting in a row, albeit at a slower pace amid signs the trend of cooling inflation stalled at the start of 2026.

The Central Bank of Turkey cut its benchmark rate to 37.0% from 38.0% on Thursday, its lowest rate since November 2023. However, that marked a slower pace of rate cut, after a 150 basis-point reduction in December. Economists had expected a similar reduction again to 36.5%

Turkish inflation reached its lowest level in the last month of 2025 since November 2021, at 30.9%. "The underlying trend of inflation declined in December," the bank said in its statement accompanying the decision.

However, at the same time, food inflation picked up. The bank said leading indicators suggest that monthly consumer inflation "firmed" in January, led by food prices, though the underlying upward trend in inflation is limited.

"Indicators for the last quarter point to demand conditions that continue to support the disinflation process, albeit at a moderating pace," the central bank added.

The expected stalling in the disinflation process in January likely played its part in slowing the pace of loosening monetary policy, Capital Economics economist Nicholas Farr said in a note to clients.

"Still, we think that inflation should continue to fall this year," he said. Policymakers could re-accelerate easing once they have confidence that January's inflation stalling is likely to be temporary, he added.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

January 22, 2026 07:10 ET (12:10 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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