Business · Economy · 15 hrs ago
Turkey’s central bank explains its cut in the policy rate to 36%
Turkey’s central bank cut its policy rate to 36% on October 22, lowering it by one percentage point after nine months without a cut.
The bank’s meeting summary reviewed inflation risks, interest rates on loans and deposits, reserves and recent economic activity.
Annual inflation fell to 29.73% in September, while the bank said underlying inflation continued to ease.
It warned that rising food and energy prices could push consumer inflation higher in October, though their effect on the underlying trend was expected to be limited.
Services inflation remained much higher than goods inflation, at about 38% compared with 25%, and the bank said services prices can be slow to adjust.
Expectations for 2027 inflation rose to 23.3%, while expectations and pricing behaviour continued to pose risks to the decline in inflation.
The bank has published its explanation of the decision; the summary gives no further timetable for rate changes.
Turkey’s central bank cut its policy rate by 100 basis points to 36% at its 22 October meeting.
The bank said it reduced the rate as its indicators showed that underlying inflation continued to ease.
It warned that rising food and energy prices could push consumer inflation higher in October.
Annual consumer inflation fell to 29.73% in September, while the bank said inflation expectations and pricing behaviour remained risks.
The bank published its summary of the 22 October meeting on 30 October.
- Who
- Turkey’s central bank, the Central Bank of the Republic of Türkiye.
- What
- It cut its one-week repo rate by 100 basis points, from 37% to 36%.
- When
- The decision was made on 22 October 2026; the meeting summary was published on 30 October.
- Where
- Turkey.
- Why
- The bank said underlying inflation continued to ease, while it also noted risks from food and energy prices, inflation expectations and pricing behaviour.
This story does not have two clearly opposing sides.
The Monetary Policy Committee cut the one-week repo rate from 37% to 36%.
The central bank published a summary of its 22 October meeting.
- Policy rate
- Cut from 37% to 36%
- Rate cut
- 100 basis points
- Meeting date
- 22 October 2026
- September annual consumer inflation
- 29.73%
- Summary publication
- 30 October 2026
What people are saying
The main trend in inflation continued to decline.
Inflation expectations and pricing behaviour continue to pose risks to the disinflation process.