12.12.2025 10:23
After the Central Bank cut the policy interest rate by 150 basis points to 38%, the markets officially ignited. Following the decision, the euro surpassed 50 lira for the first time in history, while the dollar reached a historic level of 42.6920 TL today.
The Central Bank of the Republic of Turkey (CBRT) announced its interest rate decision for December. The CBRT Monetary Policy Committee reduced the policy rate by 150 basis points to 38%.
The committee also lowered the overnight lending rate to 41% and the overnight borrowing rate to 36.5%.
FIRST TIME IN HISTORY FOR EURO
Following the Central Bank's interest rate decision, a notable development occurred in the markets. The Euro surpassed 50 lira for the first time in history. The Euro reached a new historical peak against the Turkish lira by exceeding 50 TL.
DOLLAR REACHED HISTORICAL LEVEL
After the Euro, the dollar rate also saw a historical level today at 42.6920 TL. As of 09:20 today, the Dollar/TL is trading at 42.6920, which is 0.2% above the previous closing. At the same time, the Euro/TL is at 50.1580 with a 0.1% increase, and the Pound/TL is at 57.2320 with a 0.1% rise.
FED CUT INTEREST RATE, DOLLAR INDEX REMAINS STABLE
The dollar index is stable at 98.3. Following the Federal Reserve's (Fed) interest rate cut decision, predictions about how long the easing cycle will continue next year are prominent in asset pricing.
Fed Chairman Jerome Powell's cautious remarks are guiding investors towards a cautious stance, while the Bank's decision to keep its federal funds rate forecast at 3.4% for next year signaled an anticipated interest rate cut in 2026.
Despite the Fed's forecast of an interest rate cut in 2026, market pricing suggests that a total of 2 interest rate cuts will occur throughout the year, with the Bank expected to keep the policy rate steady with a 75% probability in January.