The Central Bank of Turkey raised its benchmark one-week repo rate by 200 bps to 19 percent on March 18th 2021, surprising markets who expected a hike of 100 bps and pushing borrowing costs to the highest since August 2019. Policymakers decided to implement a strong monetary tightening considering the upside risks to inflation expectations, pricing behavior and the medium-term inflation outlook associated with these developments. The annual inflation rose to 15.61 percent in February from 14.97 percent in January, the highest since July of 2019. The tight monetary policy stance will be maintained decisively for an extended period until strong indicators point to a permanent fall in inflation and price stability. Additional monetary tightening will be delivered if needed. source: Central Bank of the Republic of Turkey

Interest Rate in Turkey averaged 58.36 percent from 1990 until 2021, 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 April of 2021.

Interest Rate in Turkey is expected to be 19.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Turkey to stand at 18.00 in 12 months time. In the long-term, the Turkey Interest Rate is projected to trend around 12.50 percent in 2022, according to our econometric models.

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Turkey Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
19.00 17.00 500.00 4.50 1990 - 2021 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-12-24 11:00 AM TCMB Interest Rate Decision 17% 15% 16.5% 16.5%
2021-01-21 11:00 AM TCMB Interest Rate Decision 17% 17% 17% 17%
2021-02-18 11:00 AM TCMB Interest Rate Decision 17% 17% 17% 17%
2021-03-18 11:00 AM TCMB Interest Rate Decision 19% 17% 18% 18.5%
2021-04-15 11:00 AM TCMB Interest Rate Decision 19% 19% 19%
2021-04-22 11:00 AM MPC Meeting Summary
2021-05-06 11:00 AM TCMB Interest Rate Decision
2021-05-11 11:00 AM MPC Meeting Summary


News Stream
Turkey Hikes Policy Rate to 19%
The Central Bank of Turkey raised its benchmark one-week repo rate by 200 bps to 19 percent on March 18th 2021, surprising markets who expected a hike of 100 bps and pushing borrowing costs to the highest since August 2019. Policymakers decided to implement a strong monetary tightening considering the upside risks to inflation expectations, pricing behavior and the medium-term inflation outlook associated with these developments. The annual inflation rose to 15.61 percent in February from 14.97 percent in January, the highest since July of 2019. The tight monetary policy stance will be maintained decisively for an extended period until strong indicators point to a permanent fall in inflation and price stability. Additional monetary tightening will be delivered if needed.
2021-03-18
Turkey Holds Rates, Pledges to Tight Policy if Needed
The Central Bank of Turkey held its benchmark one-week repo rate at 17.0 percent during its February 2021 meeting, saying that the tight monetary policy stance will be maintained decisively, taking into account the end-2021 forecast target, for an extended period until strong indicators point to a permanent fall in inflation and price stability. Policymakers also said that domestic demand conditions, alongside exchange rate effects, increasing international food and other commodity prices and high levels of inflation expectations continue to affect the pricing behavior and inflation outlook adversely, and that additional monetary tightening will be delivered if needed. At the same time, the central bank said economic activity is on a strong course, but uncertainties surrounding the short-run outlook prevail.
2021-02-18
Turkey Keeps Rates on Hold as Expected
The central bank of Turkey kept its benchmark one-week repo rate steady at 17% on January 21st 2021, in line with expectations, following a 200bps rise in the previous month. Policymakers said tight policy stance will remain until indicators point to a permanent fall in inflation and that additional tightening will be delivered if needed. The inflation rate in Turkey increased to 14.6 percent in December, reaching the highest level since August of 2019.
2021-01-21
Turkey Hikes Benchmark Rate to 17%
The central bank of Turkey raised its benchmark one-week repo rate by 200bps to 17% on December 24th 2020, the highest since August of 2019, and above market forecasts of a 150bps hike. Policymakers said that uncertainties surrounding the global economic activity prevail due to a recent increase in Covid-19 cases, despite vaccine rollout. Moreover, restrictions introduced create uncertainties on the short-run outlook, particularly in the services sector. It is the second consecutive rate hike under the new central bank governor as he pledged to tighten policy to ensure price stability. In November, the central bank increased rates by 475bps.
2020-12-24

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.