The central bank said it would lower its benchmark rate to 43% from 46%, restarting an easing cycle that had been disrupted by a political furor.

The European Central Bank will likely hold off on making another interest rate cut Thursday, choosing to wait until it can measure the size of any economic blow from higher U.S. tariffs. The ECB has already cut rates eight times since June of last year and President Christine Lagarde said after the last policy meeting June 5 that the central bank is “getting to the end of a monetary policy cycle.

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,