Turkey central bank cuts interest rate by 100 basis points to 36%

The Central Bank of the Republic of Turkey reduced its one-week repo rate by 100 basis points to 36.00% on Thursday.

The rate cut marks the beginning of the central bank’s easing cycle as inflation pressures continue to decline.

The decision matched both market consensus and analyst forecasts.

The move follows the CBRT’s resumption of one-week repo auctions in August, which lowered the cost of central bank liquidity provision by 300 basis points.

Policymakers appear more confident that the disinflation trend will continue. Turkey’s inflation rate fell to 29.7% year-over-year in September, marking the first time the figure dropped below 30% since late 2021.