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Turkey cuts key interest rate to 37% as inflation slows

On Jan. 22, the Central Bank of the Republic of Türkiye's Monetary Policy Committee cut the one-week repo by 100 basis points to 37%, continuing a gradual easing cycle.
The bank said underlying inflation trends have declined and domestic demand is supporting the disinflation process, with CPI easing to 30.89 percent in December, down from 31.07 percent in November.
Following earlier cuts, the Central Bank of the Republic of Türkiye eased again Thursday with a 100-basis-point cut after 150 in December, marking the fifth reduction since last summer.
The MPC said it will make predictable, data-driven decisions, reiterated its 5 percent inflation target medium-term goal, and announced eight rate-setting meetings in 2026 with cuts data-dependent.
A path of 100-150bp cuts per meeting could lower the rate to 28% by end-2026, the bank said, while financial indicators show USD/TRY remains under control with strong Turkish eurobond market demand.

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Turkey Slashes Interest Rate By 100 Bps

Turkey's central bank reduced its benchmark rate by 100 basis points on Thursday as underlying trend of inflation continued to ease. The Monetary Policy Committee of the Central Bank of the Republic of Turkey decided to reduce the policy rate to 37.

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