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.