The Central Bank of Turkey raised its benchmark one-week repo rate by 750 bps to 25 percent on August 24th, following a 250 bps hike in the previous meeting and pushing borrowing costs to the highest since January 2004. Markets were expecting a smaller increase to 20%. The Central Bank's decision to raise the interest rate was driven by the goal of establishing a disinflationary path as quickly as possible, anchoring inflation expectations, and controlling the deterioration in pricing behavior. Recent indicators indicated a continued rise in the underlying trend of inflation. Despite these challenges, the Committee still believes that disinflation will be achieved in 2024. The central bank reiterated its commitment to a continued monetary tightening process, reinforcing the stance to strengthen monetary policy as necessary in a gradual manner until there is a significant improvement in the inflation outlook. source: Central Bank of the Republic of Turkey

Interest Rate in Turkey averaged 57.74 percent from 1990 until 2023, reaching an all time high of 500.00 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 August of 2023.

Interest Rate in Turkey is expected to be 22.50 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 15.00 percent in 2024 and 12.00 percent in 2025, according to our econometric models.

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Turkey Interest Rate



Calendar GMT Reference Actual Previous Consensus TEForecast
2023-06-22 11:00 AM TCMB Interest Rate Decision 15% 8.5% 21% 30.0%
2023-07-20 11:00 AM TCMB Interest Rate Decision 17.5% 15% 20% 20.0%
2023-08-24 11:00 AM TCMB Interest Rate Decision 25% 17.5% 20% 20.0%
2023-09-21 11:00 AM TCMB Interest Rate Decision 27.5%
2023-10-26 11:00 AM TCMB Interest Rate Decision 30.0%
2023-11-02 07:30 AM Inflation Report


Related Last Previous Unit Reference
Interest Rate 25.00 17.50 percent Aug 2023
Money Supply M1 4390070878.50 4180536953.50 TRY Thousand Jul 2023
Money Supply M2 11478416920.80 10834532376.00 TRY Thousand Jul 2023
Money Supply M3 11772906623.40 11109895713.60 TRY Thousand Jul 2023
Foreign Exchange Reserves 76290.00 75100.00 USD Million Aug 2023
Banks Balance Sheet 18979557551.00 16804981456.00 TRY Thousand Jun 2023
Loans to Private Sector 4634139666.00 4234542589.00 TRY Thousand Jun 2023
Deposit Interest Rate 23.50 16.00 percent Aug 2023
Cash Reserve Ratio 25.00 25.00 percent Aug 2023
Lending Rate 26.50 19.00 percent Aug 2023
Central Bank Balance Sheet 5507228764.00 4976091037.00 TRY Thousand Jul 2023
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
25.00 17.50 500.00 4.50 1990 - 2023 percent Daily

News Stream
Turkey Hikes Policy Rate by 750 bps to 25%
The Central Bank of Turkey raised its benchmark one-week repo rate by 750 bps to 25 percent on August 24th, following a 250 bps hike in the previous meeting and pushing borrowing costs to the highest since January 2004. Markets were expecting a smaller increase to 20%. The Central Bank's decision to raise the interest rate was driven by the goal of establishing a disinflationary path as quickly as possible, anchoring inflation expectations, and controlling the deterioration in pricing behavior. Recent indicators indicated a continued rise in the underlying trend of inflation. Despite these challenges, the Committee still believes that disinflation will be achieved in 2024. The central bank reiterated its commitment to a continued monetary tightening process, reinforcing the stance to strengthen monetary policy as necessary in a gradual manner until there is a significant improvement in the inflation outlook.
2023-08-24
Turkey Hikes Policy Rate Less Than Expected
The Central Bank of Turkey raised its benchmark one-week repo rate by 250 bps to 17.5 percent on July 20th, following a 650 bps hike in the previous meeting and pushing borrowing costs to the highest since September 2021. Markets were expecting a bigger increase to 20%. The Committee decided to continue the monetary tightening process in order to establish the disinflation course as soon as possible, to anchor inflation expectations, and to control the deterioration in pricing behavior. Recent indicators point to continuation of the increase in the underlying trend of inflation and the Committee anticipates that tax regulations and the deterioration in pricing behavior will put further pressure on inflation. Looking ahead, monetary tightening will be further strengthened as much as needed in a timely and gradual manner until a significant improvement in the inflation outlook is achieved.
2023-07-20
Turkey Hikes Policy Rate Less Than Expected
The Central Bank of Turkey raised its benchmark one-week repo rate by 650 bps to 15 percent on June 22nd, pushing borrowing costs to the highest since November 2021. Markets were expecting a bigger increase to 21%. It marks a reversal from President Tayyip Erdogan's unorthodox economic policies, with assignments of Hafize Gaye Erkan as the head of Turkey's central bank, and Mehmet Simsek as the new Treasury and Finance Minister. The Committee decided to begin the monetary tightening process in order to establish the disinflation course as soon as possible, to anchor inflation expectations, and to control the deterioration in pricing behavior. Looking forward, policymakers said monetary policy will be further strengthened as much as needed in a timely and gradual manner.
2023-06-22