Central Bank of Turkey cuts Rates from 40.5% to 39.5%

TCB MPC Decision Day

Policy Rates

• The Monetary Policy Committee (Kurul) decided to reduce the policy interest rate (one-week repo auction interest rate) from 40.5% to 39.5%.

• The Committee also reduced the overnight lending interest rate from 43.5% to 42.5%.

• The overnight borrowing interest rate was reduced from 39% to 38%.

• The Committee members present were Yaşar Fatih Karahan (Chairman), Osman Cevdet Akçay, Elif Haykır Hobikoğlu, Hatice Karahan, and Fatma Özkul.

Economic Assessment and Future Policy

• The main trend of inflation increased in September.

• Recent data suggests that demand conditions are at a disinflationary level, but the disinflation process has slowed down.

• Risks to the disinflation process, particularly from recent price developments (especially food) affecting inflation expectations and pricing behaviors, have become apparent.

• The strict monetary policy stance will be maintained until price stability is achieved.

• The Board will set policy decisions to achieve monetary and financial conditions that will bring inflation to the 5 percent target in the medium term.

• If the inflation outlook significantly deviates from intermediate targets, the monetary policy stance will be tightened.

• Policy decisions will be determined within a predictable, data-driven, and transparent framework.

Publication

• The Summary of the Monetary Policy Committee Meeting will be published within five business days.