Turkey's central bank lowers key interest rate to 47.5%

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Turkey's central bank lowers key interest rate to 47.5%

2024-12-27 00:04 Last Updated At：00:11

ANKARA, Turkey (AP) — Turkey’s central bank lowered its key interest rate by 2.5 percentage points to 47.5% on Thursday, carrying out its first rate cut in nearly two years as it tries to control soaring inflation.

Citing slowing inflation, the bank’s Monetary Policy Committee said it was reducing its one-week repo rate to 47.5% from the current 50%.

The committee said in a statement that the overall inflation trend was “flat” in November and that indicators suggest it is likely to decline in December. Demand within the country was slowing, helping to reduce inflation, it said.

Inflation in Turkey surged in recent years due to declining foreign reserves and President Recep Tayyip Erdoğan’s unconventional economic policy of lowering rates as a way to tame inflation — which he later abandoned.

Inflation stood at 47% in November, after having peaked at 85% in late 2022, although independent economists say the real rate is much higher than the official figures.

Most economists argue that higher interest rates help control inflation, but the Turkish leader had fired central bank governors for failing to fall in line with his previous rate-cutting policies.

Following a return to more conventional policies under a new economic team, the central bank raised interest rates from 8.5% to 50% between May 2023 and March 2024. The bank had kept rates steady at 50% until Thursday's rate cut.

The high inflation has left many households struggling to afford basic goods, such as food and housing.

Israel announces new strikes against Houthi rebels in Yemen's capital and ports

2024-12-27 00:05 Last Updated At：00:10

DEIR AL-BALAH, Gaza Strip (AP) — Houthi rebels in Yemen said Israeli airstrikes on Thursday targeted the rebel-held capital of Sanaa and the port city of Hodeida, following several days of Houthi launches setting off sirens in Israel.

The Israeli military said it attacked infrastructure used by the Houthis at the international airport in Sanaa and ports at Hodeida, Al-Salif and Ras Qantib along with power stations. It came a day after Israeli Prime Minister Benjamin Netanyahu said that “the Houthis, too, will learn what Hamas and Hezbollah and Assad’s regime and others learned.”

Netanyahu monitored the new strikes along with military leaders, his government said. The Iran-backed Houthis' media outlet confirmed the strikes in a Telegram post but gave no immediate details. The U.S. military also has targeted the Houthis in Yemen in recent days. The United Nations has noted that the ports are important entryways for humanitarian aid.

Over the weekend, 16 people were wounded when a Houthi missile hit a playground in Tel Aviv. Last week, Israeli jets struck Sanaa and Hodeida, killing nine people, calling it a response to previous Houthi attacks. The Houthis also have been targeting shipping on the Red Sea corridor, calling it solidarity with Palestinians in Gaza.

Meanwhile, an Israeli strike killed five Palestinian journalists outside a hospital in the Gaza Strip overnight, the territory's Health Ministry said. The Israeli military said that all were militants posing as reporters.

The strike hit a car outside Al-Awda Hospital in the built-up Nuseirat refugee camp in central Gaza. The journalists were working for the local news outlet Al-Quds Today, a television channel affiliated with the Islamic Jihad militant group.

Islamic Jihad is a smaller and more extreme ally of Hamas and took part in the Oct. 7, 2023 attack in southern Israel, which ignited the war. The Israeli military identified four of the men as combat propagandists and said that intelligence, including a list of Islamic Jihad operatives found by soldiers in Gaza, had confirmed that all five were affiliated with the group.

Hamas, Islamic Jihad and other Palestinian militant groups operate political, media and charitable operations in addition to their armed wings.

Associated Press footage showed the incinerated shell of a van, with press markings visible on the back doors. Sobbing young men attended the funeral outside the hospital. The bodies were wrapped in shrouds, with blue press vests draped over them.

The Committee to Protect Journalists says that more than 130 Palestinian reporters have been killed since the start of the war. Israel hasn't allowed foreign reporters to enter Gaza except on military embeds.

Israel has banned the pan-Arab Al Jazeera network and accused six of its Gaza reporters of being militants. The Qatar-based broadcaster denies the allegations and accuses Israel of trying to silence its war coverage, which has focused heavily on civilian casualties from Israeli military operations.

Separately, Israel's military said that a 35-year-old reserve soldier was killed during fighting in central Gaza early Thursday. A total of 389 soldiers have been killed in Gaza since the start of the ground operation more than a year ago.

The war began when Hamas-led militants stormed across the border in an attack on nearby army bases and farming communities. They killed around 1,200 people, mostly civilians, and abducted around 250. About 100 hostages are still inside Gaza, at least a third believed to be dead.

Israel's air and ground offensive has killed more than 45,000 Palestinians, according to the Health Ministry. It says more than half the fatalities have been women and children, but doesn't say how many of the dead were fighters. Israel says it has killed more than 17,000 militants, without providing evidence.

The offensive has caused widespread destruction and driven around 90% of the population of 2.3 million from their homes. Hundreds of thousands are packed into squalid tent camps along the coast, with little protection from the cold, wet winter.

Also Thursday, people mourned eight Palestinians killed by Israeli military operations in and around the city of Tulkarem in the occupied West Bank on Tuesday, according to the Palestinian Health Ministry. The Israeli military said that it opened fire after militants attacked soldiers, and it was aware of uninvolved civilians who were harmed in the raid.

A previous version of this story was corrected to show that the name of the local news outlet is Al-Quds Today, not the Quds News Network.

Follow AP’s war coverage at https://apnews.com/hub/israel-hamas-war