Turkey’s Central Bank Cuts Interest Rate to 45%

The Central Bank of the Republic of Turkey (CBRT) reduced the benchmark weekly repo rate by 250 basis points, lowering it from 47.5% to 45%, as announced in its January Monetary Policy Committee (MPC) meeting. The decision aligns with market expectations and continues the rate-cutting trend initiated in late 2024, following eight consecutive meetings of unchanged rates.

Inflation-Centric Monetary Policy

In its statement, the MPC emphasized a cautious, inflation-focused approach to decision-making. The committee noted, “In case of significant and persistent deterioration in inflation, monetary policy tools will be used effectively.”

This measured strategy reflects the bank’s commitment to addressing inflationary pressures while supporting economic stability.

Upcoming Monetary Policy Meetings

The CBRT’s next monetary policy meeting is scheduled for March 6, with subsequent meetings planned throughout the year. Subject decisions will continue to shape Turkey’s monetary stance as the country navigates economic challenges in 2025.