22.10.2026 14:13
The Central Bank of the Republic of Turkey announced the interest rate decision eagerly awaited by the markets. Cutting interest rates for the first time since January 2026, the bank lowered its policy rate by 100 basis points to 36 percent. Thus, after a 9-month hiatus, a new step was taken in monetary policy.
The Central Bank of the Republic of Türkiye (CBRT) announced the eagerly awaited interest rate decision following the October Monetary Policy Committee (MPC) meeting. The Central Bank lowered the policy rate by 1 point to 36 percent. The Committee also lowered the Central Bank's overnight lending rate from 40 percent to 39 percent and the overnight borrowing rate from 35.5 percent to 34.5 percent.
ATTENTION DRAWN TO THE DECLINE IN INFLATION
The statement from the Monetary Policy Committee is as follows:
“The Monetary Policy Committee (the Committee) has decided to lower the policy rate, the one-week repo auction interest rate, from 37 percent to 36 percent. The Committee also lowered the Central Bank's overnight lending rate from 40 percent to 39 percent and the overnight borrowing rate from 35.5 percent to 34.5 percent.
Despite monthly fluctuations, recent inflation outturns and leading indicators confirm the decline in the underlying trend. Data on economic activity and the limited pass-through of supply shocks to domestic prices indicate that the weak course of domestic demand continues.
RISK WARNING FOR ENERGY PRICES
On the other hand, upward risks to the inflation outlook stemming from high energy prices due to geopolitical tensions that remain lively continue.
INFLATION WILL BE DETERMINATIVE IN NEW INTEREST RATE DECISIONS
The Committee will determine the steps to be taken regarding the policy rate by taking into account inflation outturns, its underlying trend, and expectations, in a manner consistent with intermediate targets and ensuring the tightness required by disinflation.
The size and timing of the steps will be determined with an inflation outlook-focused, meeting-by-meeting, and cautious approach.”
CENTRAL BANK INTEREST RATE DECISIONS
- January 2025: The policy rate was lowered from 47.5 percent to 45 percent.
- March 2025: The policy rate was lowered from 45 percent to 42.5 percent.
- April 2025: The policy rate was raised from 42.5 percent to 46 percent.
- June 2025: The policy rate was kept constant at 46 percent.
- July 2025: A meeting was held, and the rate was left unchanged.
- September 2025: The policy rate was lowered from 43 percent to 40.5 percent.
- October 2025: The policy rate was reduced from 40.5 percent to 39.5 percent.
- December 2025: The policy rate was cut from 39.5 to 38.
- January 2026: The policy rate fell from 38 to 37 percent
- In March, the CBRT kept the policy rate constant at 37 percent.
- In April, it kept it constant at 37 percent.
- In May, no interest rate decision was announced.
- In June, the policy rate was kept constant at 37 percent.
- In July, it was kept constant at 37 percent.
- In September, the interest rate was left constant at 37 percent.