Updated October 23, 2026
The Central Bank of the Republic of Türkiye cut its benchmark one-week repo rate by one percentage point, from 37% to 36%, at its October 22 meeting. It was the first reduction after five consecutive meetings without a change. The bank also lowered its overnight lending rate from 40% to 39% and overnight borrowing rate from 35.5% to 34.5%, according to its official announcement.
Why did the bank cut rates?
The Monetary Policy Committee said recent inflation indicators point to a slower underlying trend and that domestic demand remains weak. Annual consumer inflation was reported at about 29.7% in September, its first reading below 30% in almost five years. The bank also cautioned that elevated energy prices and geopolitical tensions continue to pose upside risks to inflation.
What does a 36% policy rate mean?
The one-week repo rate is the central bank’s benchmark policy rate. A cut can influence funding conditions and market rates, but it does not automatically reduce every person’s loan or deposit rate by one percentage point. Banks set retail offers based on their own funding costs, risk assessments, product terms and competition.
What borrowers and savers should check
- Compare the annual rate, fees and total repayment cost before taking a loan.
- For deposits, check the term, renewal rate and early-withdrawal rules.
- Do not assume the same rate change applies immediately to every bank product.
What happens next?
The rate decision is not a promise of another cut. The central bank’s next steps will depend on incoming inflation, demand, energy costs and its assessment of price stability. The official announcement does not guarantee a specific path for the lira, deposit returns or borrowing costs.
Bottom line: Türkiye’s policy rate now stands at 36% after a 100-basis-point cut. The move signals a shift in monetary policy, while the bank says inflation and energy risks still matter.
Sources: Central Bank of Türkiye; Anadolu Agency. Image: Wikimedia Commons.
