Turkey Interest Rate1990-2021 Data | 2022-2023 Forecast | Calendar | Historical

The Central Bank of Turkey held its one-week repo rate at 19 percent during its July meeting, as expected warning for possible volatility in inflation during the summer due to the reopening and high levels of inflation expectations continue to pose risks to the pricing behavior and inflation outlook. Taking into account the high levels of inflation and inflation expectations, the current tight monetary policy stance will be maintained decisively until the significant fall in the April Inflation Report’s forecast path is achieved.The CBRT will continue to use decisively all available instruments in pursuit of the primary objective of price stability. The policy rate will continue to be determined at a level above inflation to maintain a strong disinflationary effect until strong indicators point to a permanent fall in inflation and the medium-term 5 percent target is reached.

The Central Bank of Turkey held its one-week repo rate at 19 percent during its June meeting, saying the current tight monetary policy stance will be maintained decisively until a significant fall in inflation towards the April Inflation Report’s forecast path is achieved. Policymakers noted that the strong economic growth has been supported by solid external demand, despite the deceleration of domestic demand in the second quarter due to pandemic restrictions and the tightening in financial conditions. In addition, the current account balance is seen improving, as the strong upward trend in exports, the slowdown in credit growth, the significant fall in gold imports and the strong progress in the vaccination program stimulating tourism activities more than offset the rise in commodity prices.

The Central Bank of Turkey held its one-week repo rate at 19 percent on May 6th 2021, as expected, saying the decelerating impact of the monetary tightening on credit and domestic demand has begun to be observed. Turkey's consumer price inflation surged to a near 2-year high of 17.14 percent in April and last week the central bank said it expects it to decline to 12.2 percent by year-end. Policymakers noted domestic economic activity is strong but risks for economic activity exist in either direction depending on the progress of the pandemic and the vaccination process. The CBRT will continue to use decisively all available instruments in pursuit of the primary objective of price stability. The policy rate will continue to be determined at a level above inflation to maintain a strong disinflationary effect until strong indicators point to a permanent fall in inflation and the medium-term 5 percent target is reached.

The Central Bank of Turkey held its one-week repo rate at 19 percent on April 15th, the first monetary policy meeting since Sahap Kavcioglu was appointed as the central bank's new governor. Policymakers noted that demand and cost factors, supply constraints in some sectors, and high levels of inflation expectations continued to pose risks to the pricing behavior and inflation outlook. At the same time, officials agreed that risks for economic activity existed in either direction depending on the progress of the pandemic and the vaccination process. Since November, the central bank has raised interest rates by 875 bps to counter a sharp rise in inflation, which hit in March its highest level since mid-2019. The bank pledged to maintain the policy rate at a level above inflation to maintain a strong disinflationary effect, but did not repeat last month's pledge to deliver more tightening if needed.