07:13 AM EST, 03/06/2025 (MT Newswires) -- Turkey's central bank (CBT) Thursday said its Monetary Policy Committee decided to reduce the policy rate -- the one-week repo auction rate -- by 250bps to 42.50%, as expected.

The central bank pointed out that the underlying trend of inflation decreased in February.

"The decisiveness regarding tight monetary stance is strengthening the disinflation process through moderation in domestic demand, real appreciation in Turkish lira, and improvement in inflation expectations," CBT noted in its policy statement. "Going forward, increased coordination of fiscal policy will also contribute significantly to this process."