Turkey’s central bank lowered borrowing costs for a second meeting in a row, noting that inflation continued to trend lower, the Wall Street Journal reported. The central bank said Thursday that it would lower its benchmark rate to 40.5% from 43%. It had previously cut its key rate to 43% from 46% in late July. “The underlying trend of inflation slowed down in August,” the central bank said.

Turkish inflation continued to ease as the third quarter progressed, clearing the way for the country’s central bank to keep trimming interest rates despite still-hot growth in the economy, the Wall Street Journal reported. Consumer prices were 33% higher on year in August, a rate of annual inflation that eased from 33.5% in July, figures from statistics office Turkstat showed Wednesday. Turkey’s central bank at its last meeting renewed cutting interest rates as inflation eases, having earlier in the year been forced to lift rates in response to market concerns over Turkish politics.

Turkey’s central bank moved to lower borrowing costs for the first time in nearly five months, restarting an easing cycle that had been disrupted by a political furor, the Wall Street Journal reported. The central bank said Thursday it would lower its benchmark rate by three points to 43% from 46%, marking the first time since early March that it has cut rates. Later that month, a prominent political rival to President Recep Tayyip Erdogan was arrested by police on what the opposition described as politically motivated charges.

Turkish steelmaker Sıddık Kardeşler Haddecilik, has been unable to overcome its ongoing financial difficulties and has filed for bankruptcy proceedings, SteelOrbis.com reported. Accordingly, the company and its partners have filed for bankruptcy with the Istanbul Anatolia Second Commercial Court of First Instance, with its debt reportedly amounting to TRY 2.6 billion ($90.32 million). The court granted the company a three-month temporary notice and appointed a temporary bankruptcy commissioner.

Turkey is taking steps to prevent the laundering of criminal proceeds from illegal betting and fraud through cryptocurrency transactions, Finance Minister Mehmet Simsek said on Tuesday, Reuters reported. On his X account, he reposted an article by state-owned Anadolu news agency saying Turkey was preparing to introduce transfer limits and mandatory waiting periods for withdrawals on crypto assets.

Turkey’s annual inflation rate dropped to 38.1% in March, down from February’s 39.1%, according to the Turkish Statistical Institute, EuroNews.com reported. It was also the lowest number since December 2021. Prices rose at a slower pace across a number of categories, such as footwear and clothing, which came in at 14.8% in March, down from 20.8% in the previous month. Transport inflation dropped to 21.6% in March, down from 23.4% in February. Household equipment and furnishings inflation slid marginally to 32.4% in March, down from 33.6% in the previous month.

Turkey’s central bank raised one of its key interest rates in a surprise meeting on Thursday, the latest move by authorities to reverse a decline in the lira, Bloomberg News reported. The monetary authority hiked the overnight lending rate by two percentage points to 46%, while keeping the main gauge of one-week repo unchanged. The lira, which tumbled 3.2% a day earlier, rose briefly after the news and was trading 0.1% lower at 37.9520 per dollar at 7:22 p.m.

Turkey lowered its benchmark one-week repo rate from 45% to 42.5% on Thursday, EuroNews.com reported. The decision came after official data showed annual inflation dipping below 40% for the first time in nearly two years. In a statement released after the committee meeting, the bank said it would review inflation trends and adjust rates cautiously in upcoming policy meetings. “While inflation expectations and pricing behaviour tend to improve, they continue to pose risks to the disinflation process,” the bank said.