Turkey Cuts Interest Rate to 36%, First Cut in 9 Months
The bank cited a downward inflation trend and said annual inflation fell below 30% in September, while independent economists reported 46.6%.
- On Oct 22, 2026, Turkey's central bank reduced its policy interest rate to 36% from 37%, marking the first reduction in nine months as inflation slowed.
- Official figures show Turkey's annual inflation eased to 29.7% in September from 31.5% in August, the first time it fell below 30% in nearly five years.
- Independent economists from the ENAG group dispute official data, reporting year-on-year inflation actually stood at 46.6%, complicating the central bank's assessment of disinflation.
- Policymakers warned that ongoing geopolitical tensions are keeping energy prices high, with effects "are being closely monitored," despite confirming "the downward trend."
- Finance Minister Mehmet Simsek previously noted the 36% rate is the lowest level since November 2021, as the bank added that "the weak trend in domestic demand continues.
51 Articles
51 Articles
Turkey's central bank cut its key interest rate by 1 percentage point to 36% after five consecutive meetings without change. The decision is the first signal of renewed monetary easing, but the institution made it clear that the next steps will depend on inflation and economic developments. The overnight lending rate was cut from 40% to 39%, and the overnight deposit rate from 35.5% to 34.5%. The move matched market expectations. According to a …
The Turkish Central Bank has reduced the main interest rate by 100 points to 36% today Thursday, in line with expectations, after keeping it unchanged at the previous five meetings.
Previously, the central bank had left the interest rate unchanged at the five previous meetings, while the inflation rate remained at a high level.
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