- BIST10011,310-2.30%
- USD49.60+0.05%
- EUR55.68+0.11%
- GOLD4,098.70-1.24%
- INTEREST37.00%-1.00
- BITCOIN81,678-2.79%
- October 22, 202622°
- BIST10011,310-2.30%
- USD49.60+0.05%
- EUR55.68+0.11%
- GOLD4,098.70-1.24%
- INTEREST37.00%-1.00
- BITCOIN81,678-2.79%
- October 22, 202622°
Türkiye's central bank cuts policy rate by 100 basis points to 36%
The Central Bank of the Republic of Türkiye cut its policy rate from 37% to 36%. This marked the central bank's first policy-rate cut in nine months.
The Monetary Policy Committee of the Central Bank of the Republic of Türkiye (CBRT) cut the one-week repo auction rate, the policy rate, by 100 basis points from 37% to 36%. This was the central bank's first policy-rate cut since January, or in nine months.
The committee also lowered the overnight lending rate from 40% to 39% and the borrowing rate from 35.5% to 34.5%.
"The decline in the underlying trend is being confirmed"
The decision text said that, despite monthly fluctuations, recent inflation data and leading indicators were confirming the decline in the underlying trend, while weak domestic demand continued. It also noted that elevated energy prices posed an upside risk to inflation.
The committee reiterated that the size and timing of its steps would be determined cautiously on a meeting-by-meeting basis, with a focus on the inflation outlook. It also reiterated that a tight monetary policy stance would be maintained until price stability is achieved, along with the medium-term inflation target of 5%.
Decision in line with expectations
The decision was in line with market expectations. In a survey of 37 economists conducted by Matriks Haber, 32 participants had expected a 100-basis-point cut. Economists' median policy-rate expectation for the end of 2026 is 35%.
Meanwhile, according to CBRT data, net international reserves stood at $51.51 billion in the week of Oct. 16, while total gross reserves were $169.1 billion.
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