23.10.2025 14:10
The Monetary Policy Committee of the Central Bank of the Republic of Turkey has reduced the policy interest rate, which is the one-week repo auction rate, by 100 basis points to 39.5%. In a written statement from the Central Bank, it was noted that "The main trend of inflation has increased in September. Recent data indicate that the disinflation process has slowed down."
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The Central Bank has reduced the interest rate by 100 basis points from 40.5% to 39.5%.
The Central Bank of the Republic of Turkey (CBRT) announced its interest rate decision. The Monetary Policy Committee (Committee) decided to lower the policy rate, which is the one-week repo auction interest rate, from 40.5% to 39.5%. The Committee also reduced the overnight lending rate from 43.5% to 42.5% and the overnight borrowing rate from 39% to 38%.
"THE DISINFLATION PROCESS HAS SLOWED"
The decision text included the following statements: "The main trend of inflation has increased in September. Recent data indicate that the demand conditions are at a disinflationary level, but the disinflation process has slowed down. Recent price developments, especially in food, have made the risks posed to the disinflation process through inflation expectations and pricing behaviors more pronounced."
"TIGHT STANCE WILL CONTINUE UNTIL PRICE STABILITY IS ACHIEVED"
The tight monetary policy stance, which will be maintained until price stability is achieved, will strengthen the disinflation process through demand, exchange rate, and expectation channels. The Committee will determine the steps to be taken regarding the policy rate in a way that ensures the tightness required for disinflation, in line with intermediate targets, taking into account inflation realizations, its main trend, and expectations. The magnitude of the steps is being reviewed with a focus on the inflation outlook, on a meeting-by-meeting basis, and with a cautious approach. If the inflation outlook diverges significantly from the intermediate targets, the monetary policy stance will be tightened."
"MONETARY TRANSMISSION MECHANISM WILL BE SUPPORTED"
In the event of developments in the credit and deposit markets that are outside expectations, the monetary transmission mechanism will be supported with additional macroprudential measures. Liquidity conditions will continue to be closely monitored, and liquidity management tools will be used effectively. The Committee will determine its policy decisions in a way that provides the monetary and financial conditions necessary to bring inflation to the medium-term target of 5%. The Committee will make its decisions within a predictable, data-driven, and transparent framework."
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