CBRT cuts policy rate for the first time since January
While the Central Bank of the Republic of Turkey lowered its policy rate to 36 percent, international banks found the decision in line with expectations.
The Monetary Policy Committee of the Central Bank of the Republic of Turkey (CBRT) reduced the policy rate by 100 basis points, bringing it down from 37 percent to 36 percent. With the first interest rate cut implemented since January, the overnight lending rate dropped to 39 percent, while the borrowing rate fell to 34.5 percent.
Following the CBRT's interest rate decision, foreign banks such as ING, HSBC, Citi, and Barclays shared evaluations. Analysts found the decision in line with market expectations, shaping their end-of-2026 policy rate expectations around the 35 percent level. Citi stated that the CBRT is more confident in the slowdown of inflation dynamics, while Barclays projected that the interest rate will decline to 30 percent by the end of 2027. ING emphasized that the width of the interest rate corridor was maintained at the 450 basis point level.