The Central Bank of Turkey has decided to cut the base interest rate from 43% to 40.5%.
“The Monetary Policy Committee has decided to cut the base interest rate - the weekly interest rate at repo auctions - from 43% to 40.5%,“ the regulator said in a statement on its website after the committee meeting. Earlier, the Central Bank of Turkey cut its key interest rate on July 24 from 46% to 43%.
The central bank also cut the overnight lending rate from 46% to 43.5% and the overnight lending rate from 41.5% to 39%.
„Core inflation dynamics slowed in August. Latest data suggest that demand conditions remain disinflationary. Food prices and highly inertial services continue to exert upward pressure on inflation. Inflation expectations, price dynamics and the global environment continue to pose risks to the disinflation process,” the regulator said in a statement.
In June 2023, the Central Bank of Turkey raised the key interest rate from 8.5% to 15% for the first time in more than two years, after which it regularly revised it upwards until March 2024. The regulator left the key interest rate unchanged at 50% for eight consecutive months. In December 2024, the Central Bank began a consistent reduction in the key interest rate. By March 2025, this indicator fell to 42.5%, in April there was another increase to 46%, but in July the interest rate began to decrease again.