The Central Bank of Turkey lowered its one-week repo auction rate by 325bps to 16.50 percent during its September meeting, against market expectations of a 250bps cut. It follows a 425bps rate cut in July as the inflation outlook continues to improve amid a moderate recovery in economic activity. Inflation dropped to 15 percent in August and is expected to fall briefly to single digits in October. Interest Rate in Turkey averaged 58.76 percent from 1990 until 2019, reaching an all time high of 500 percent in March of 1994 and a record low of 4.50 percent in May of 2013.

Interest Rate in Turkey is expected to be 16.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Turkey to stand at 14.25 in 12 months time. In the long-term, the Turkey Interest Rate is projected to trend around 11.50 percent in 2020, according to our econometric models.

Turkey Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2019-04-25 11:00 AM TCMB Interest Rate Decision 24% 24% 24% 24%
2019-06-12 11:00 AM TCMB Interest Rate Decision 24% 24% 24% 24%
2019-07-25 11:00 AM TCMB Interest Rate Decision 19.75% 24% 21.5% 21.5%
2019-09-12 11:00 AM TCMB Interest Rate Decision 16.5% 19.75% 17.25% 17.50%
2019-09-19 11:00 AM MPC Meeting Summary
2019-10-24 11:00 AM TCMB Interest Rate Decision 16.5% 15%
2019-10-31 11:00 AM MPC Meeting Summary



Turkey Cuts Interest Rates by 325bps

The Central Bank of Turkey lowered its one-week repo auction rate by 325bps to 16.50 percent during its September meeting, against market expectations of a 250bps cut. It follows a 425bps rate cut in July as the inflation outlook continues to improve amid a moderate recovery in economic activity. Inflation dropped to 15 percent in August and is expected to fall briefly to single digits in October.

Statement by the Central Bank of the Republic of Turkey:

Recently released data indicate that moderate recovery in economic activity continues. In the first half of the year, the contribution of net exports to economic growth continued, while investment demand remained weak and the contribution of private consumption gradually increased. Goods and services exports continue to display an upward trend despite the weakening in the global economic outlook, indicating improved competitiveness. In particular, strong tourism revenues support the economic activity through direct and indirect channels. Leading indicators point to a partial improvement in the sectoral diffusion of economic activity. Looking forward, net exports are expected to contribute to economic growth and the gradual recovery is likely to continue with the help of the disinflation trend and the improvement in financial conditions. The composition of growth is having a positive impact on the external balance. Current account balance is expected to maintain its improving trend.

Recently, advanced economy central banks have started to adopt more expansionary policies as global economic activity weakened and downside risks to inflation heightened. While these developments support the demand for emerging market assets and the risk appetite, rising protectionism and uncertainty regarding global economic policies are closely monitored in terms of their impact on both capital flows and international trade.  

Inflation outlook continued to improve. In addition to the stable course of the Turkish lira, improvement in inflation expectations and mild domestic demand conditions supported the disinflation in core indicators. In August, consumer inflation displayed a significant fall with the contribution of core goods, energy and food groups. Domestic demand conditions and the level of monetary tightness continue to support disinflation. Underlying trend indicators, supply side factors, and import prices lead to an improvement in the inflation outlook. In light of these developments, recent forecast revisions suggest that inflation is likely to materialize slightly below the projections of the July Inflation Report by the end of the year. Accordingly, considering all the factors affecting inflation outlook, the Committee decided to reduce the policy rate by 325 basis points. At this point, the current monetary policy stance, to a large part, is considered to be consistent with the projected disinflation path.

The Committee assesses that maintaining a sustained disinflation process is the key for achieving lower sovereign risk, lower long-term interest rates, and stronger economic recovery.  Keeping the disinflation process in track with the targeted path requires the continuation of a cautious monetary stance. In this respect, the extent of the monetary tightness will be determined by considering the indicators of the underlying inflation trend to ensure the continuation of the disinflation process. The Central Bank will continue to use all available instruments in pursuit of the price stability and financial stability objectives.


Central Bank of Turkey | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/12/2019 11:25:25 AM



Turkey Money Last Previous Highest Lowest Unit
Interest Rate 16.50 19.75 500.00 4.50 percent [+]
Money Supply M1 641449465.40 602757832.40 641449465.40 55562063.00 TRY Thousand [+]
Interbank Rate 15.22 15.22 28.52 4.74 percent [+]
Money Supply M2 2266821545.10 2178802052.40 2266821545.10 236620702.00 TRY Thousand [+]
Money Supply M3 2366661377.10 2278104976.00 2366661377.10 260092810.00 TRY Thousand [+]
Foreign Exchange Reserves 135102.90 136422.40 150427.20 1240.00 USD Million [+]
Banks Balance Sheet 4180965082.00 4213596752.00 4345002487.00 15859.80 TRY Thousand [+]
Loans to Private Sector 1259281390.00 1285917846.00 1438571065.00 3402.30 TRY Thousand [+]
Deposit Interest Rate 15.00 18.25 398.10 1.50 percent [+]
Private Debt to GDP 170.20 170.50 170.50 131.20 percent [+]
Lending Rate 21.25 21.25 2300.00 6.50 percent [+]
Foreign Stock Investment 30190.00 28727.00 82048.00 0.00 USD Million [+]
Cash Reserve Ratio 16.00 15.00 16.00 9.00 percent [+]
Central Bank Balance Sheet 783623223.00 745587535.00 858925152.00 9071.00 TRY Thousand [+]


Turkey Interest Rate

In Turkey, benchmark interest rates are set by the Central Bank of the Republic of Turkey Monetary Policy Committee (Türkiye Cumhuriyet Merkez Bankasi - TCMB). From June 1st 2018, the main interest rate is the one-week repo rate and the overnight borrowing and lending rates will be determined at 150 bps below/above the one-week repo rate. The central bank simplified its monetary policy framework on May 28th 2018 from a different system with four main key rates, with the late liquidity window lending rate being one of the most followed. This page provides the latest reported value for - Turkey Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Turkey Interest Rate - actual data, historical chart and calendar of releases - was last updated on September of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
16.50 19.75 500.00 4.50 1990 - 2019 percent Daily




Country Last Previous
Argentina 83.46 Sep/19
Turkey 16.50 Sep/19
Mexico 8.00 Aug/19
Russia 7.00 Sep/19
South Africa 6.50 Aug/19
Brazil 6.00 Aug/19
Indonesia 5.50 Aug/19
India 5.40 Aug/19
China 4.25 Sep/19
Saudi Arabia 2.50 Sep/19
United States 2.00 Sep/19
Canada 1.75 Sep/19
Singapore 1.74 Aug/19
South Korea 1.50 Aug/19
Australia 1.00 Sep/19
United Kingdom 0.75 Aug/19
Euro Area 0.00 Sep/19
France 0.00 Sep/19
Germany 0.00 Sep/19
Italy 0.00 Sep/19
Netherlands 0.00 Sep/19
Spain 0.00 Sep/19
Japan -0.10 Aug/19
Switzerland -0.75 Aug/19


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