The Central Bank of Turkey unexpectedly cut its interest rate by 100bps to 12% in its September 2022 meeting, surprising markets that expected rates to remain steady at 13%, and stated that recession risks are inevitable. The move followed the also unexpected 100bps rate cut in August, adding to the 700bps in interest rates slashes since September of 2021. The decision to lower borrowing costs was made despite a plunging lira, soaring consumer prices, and an unbalanced current account. Inflation crossed 80% in August, the highest since 1998, largely due to surging costs of importing energy. Also, the lira has plunged over 45% since the start of the central bank’s rate-cutting cycle last year to reach record lows. The Board foresees that the disinflationary process will begin on the back of the measures taken to pursue financial stability. source: Central Bank of the Republic of Turkey

Interest Rate in Turkey averaged 57.98 percent from 1990 until 2022, reaching an all time high of 500 percent in March of 1994 and a record low of 4.50 percent in May of 2013. 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 - data, historical chart, forecasts and calendar of releases - was last updated on September of 2022.

Interest Rate in Turkey is expected to be 12.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Turkey Interest Rate is projected to trend around 12.00 percent in 2023 and 14.00 percent in 2024, according to our econometric models.

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Turkey Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-07-21 11:00 AM TCMB Interest Rate Decision 14% 14% 14% 14%
2022-08-18 11:00 AM TCMB Interest Rate Decision 13% 14% 14% 14%
2022-09-22 11:00 AM TCMB Interest Rate Decision 12% 13% 13% 13%
2022-09-29 11:00 AM MPC Meeting Summary
2022-10-20 11:00 AM TCMB Interest Rate Decision 12% 12%
2022-10-27 11:00 AM MPC Meeting Summary


Related Last Previous Unit Reference
Interest Rate 12.00 13.00 percent Sep 2022
Money Supply M1 2762994270.80 2676783502.20 TRY Thousand Aug 2022
Money Supply M2 7230241222.30 6820437968.40 TRY Thousand Aug 2022
Money Supply M3 7346817871.60 6922580303.10 TRY Thousand Aug 2022
Foreign Exchange Reserves 74820.00 73680.00 USD Million Sep 2022
Banks Balance Sheet 10140316743.00 9467288836.00 TRY Thousand Mar 2022
Loans to Private Sector 3283531834.00 3137841856.00 TRY Thousand Jul 2022
Deposit Interest Rate 10.50 11.50 percent Sep 2022
Lending Rate 13.50 14.50 percent Sep 2022
Central Bank Balance Sheet 3238255812.00 3156169595.00 TRY Thousand Aug 2022
Cash Reserve Ratio 25.00 25.00 percent Apr 2022
Foreign Stock Investment 22048.00 21255.00 USD Million Aug 2021

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.
Actual Previous Highest Lowest Dates Unit Frequency
12.00 13.00 500.00 4.50 1990 - 2022 percent Daily

News Stream
Turkey Unexpectedly Cuts Rate by 100bps
The Central Bank of Turkey unexpectedly cut its interest rate by 100bps to 12% in its September 2022 meeting, surprising markets that expected rates to remain steady at 13%, and stated that recession risks are inevitable. The move followed the also unexpected 100bps rate cut in August, adding to the 700bps in interest rates slashes since September of 2021. The decision to lower borrowing costs was made despite a plunging lira, soaring consumer prices, and an unbalanced current account. Inflation crossed 80% in August, the highest since 1998, largely due to surging costs of importing energy. Also, the lira has plunged over 45% since the start of the central bank’s rate-cutting cycle last year to reach record lows. The Board foresees that the disinflationary process will begin on the back of the measures taken to pursue financial stability.
2022-09-22
Turkey Unexpectedly Cuts Interest Rate
The Central Bank of Turkey unexpectedly cut its interest rate by 100bps to 13% in its August 2022 meeting, surprising markets that expected rates to remain steady at 14%, and signaled that it would continue to promote the use of the lira in the Turkish economy. It was the first interest rate cut following seven consecutive decisions to hold the rate constant, adding to the 600bps in interest rates slashes since September of 2021. The decision to lower borrowing costs was made despite a plunging lira, soaring consumer prices, and an unbalanced current account. Inflation rose to 80% in July, the highest since 1998, largely due to surging costs of importing energy. The lira has plunged over 50% since the start of the central bank’s rate-cutting cycle last year. The Board foresees that the disinflationary process will begin with the resolution of military conflict in Ukraine and further measures to promote usage of the lira in Turkey.
2022-08-18
Turkey Holds Interest Rate at 14% as Expected
The Central Bank of Turkey left its key one-week repo rate unchanged at 14% in its July 2022 meeting, as expected, and signaled that it will continue to implement measures to promote the liraization of the Turkish economy. It marks the seventh consecutive decision to hold rates constant after 500bps of interest rate slashes since August 2021. The central bank stated that the increase in observed inflation is due to rising energy costs due to geopolitical conflicts in Ukraine, strong negative supply shocks of food, and emphasized that the higher prices are not a result of economic fundamentals. Annual inflation in Turkey rose to 79% in June, the highest since 1998. The Board foresees that the disinflationary process will begin with the re-establishment of the global peace environment and the elimination of base effects in inflation. At the same time, policymakers revised growth projections downward and stated that the likelihood of a recession has increased.
2022-07-21