The Central Bank of Turkey kept its benchmark interest rate at 45% in February, in line with expectations, citing an increase in inflation as predicted. In January, the annual inflation rate edged up to 64.86%, the highest since November 2022. This decision signals a break in the trend of consecutive rate hikes that have been implemented since last May and is the first under the new central bank governor, Fatih Karahan. The Board emphasized that the current rate will remain unchanged until monthly inflation rates show a significant and sustained decrease and align with forecasts. Any signs of a deteriorating inflation outlook will prompt a tightening of monetary policy. It added that decisions will be guided by the goal of lowering inflation and achieving a 5% target in the medium term, taking into account the lagged effects of prior tightening measures. source: Central Bank of the Republic of Turkey

The benchmark interest rate in Turkey was last recorded at 45 percent. Interest Rate in Turkey averaged 57.69 percent from 1990 until 2024, 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 February of 2024.

The benchmark interest rate in Turkey was last recorded at 45 percent. Interest Rate in Turkey is expected to be 45.00 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 25.00 percent in 2025 and 12.00 percent in 2026, according to our econometric models.

Ok
Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.

The Trading Economics Application Programming Interface (API) provides direct access to our data. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds.

Please Paste this Code in your Website
Width
Height

Turkey Interest Rate


Calendar GMT Reference Actual Previous Consensus TEForecast
2023-12-21 11:00 AM TCMB Interest Rate Decision 42.5% 40% 42.5% 42.5%
2024-01-25 11:00 AM TCMB Interest Rate Decision 45% 42.5% 45% 45.0%
2024-02-22 11:00 AM TCMB Interest Rate Decision 45% 45% 45% 45%
2024-02-29 11:00 AM MPC Meeting Summary
2024-03-21 11:00 AM TCMB Interest Rate Decision 45% 45%
2024-03-28 11:00 AM MPC Meeting Summary


Related Last Previous Unit Reference
Interest Rate 45.00 45.00 percent Feb 2024
Money Supply M1 4837195027.80 4757514051.70 TRY Thousand Jan 2024
Money Supply M2 13751074707.20 13615988701.60 TRY Thousand Jan 2024
Money Supply M3 14175326525.00 14018354251.00 TRY Thousand Jan 2024
Foreign Exchange Reserves 86090.00 86370.00 USD Million Feb 2024
Banks Balance Sheet 23333270394.00 22360431283.00 TRY Thousand Dec 2023
Loans to Private Sector 5294645151.00 5197501537.00 TRY Thousand Dec 2023
Deposit Interest Rate 43.50 43.50 percent Feb 2024
Lending Rate 46.50 46.50 percent Feb 2024
Central Bank Balance Sheet 6861387615.00 6711044788.00 TRY Thousand Jan 2024
Cash Reserve Ratio 25.00 25.00 percent Jan 2024
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
45.00 45.00 500.00 4.50 1990 - 2024 percent Daily

News Stream
Turkey Holds Interest Rate at 45%
The Central Bank of Turkey kept its benchmark interest rate at 45% in February, in line with expectations, citing an increase in inflation as predicted. In January, the annual inflation rate edged up to 64.86%, the highest since November 2022. This decision signals a break in the trend of consecutive rate hikes that have been implemented since last May and is the first under the new central bank governor, Fatih Karahan. The Board emphasized that the current rate will remain unchanged until monthly inflation rates show a significant and sustained decrease and align with forecasts. Any signs of a deteriorating inflation outlook will prompt a tightening of monetary policy. It added that decisions will be guided by the goal of lowering inflation and achieving a 5% target in the medium term, taking into account the lagged effects of prior tightening measures.
2024-02-22
Turkey Hikes Rates to 45% to End Tightening Cycle
The Central Bank of Turkey increased its benchmark rate by the expected 250 basis points to 45% in January 2024, signaling the end of its tightening cycle. The CBRT has raised its key rate by a total of 3,650 basis points since June, including a 250 bps hike to 42.5% last month. The bank stated that the necessary level of monetary tightness has been reached for disinflation and will be maintained as needed, considering the delayed effects of tightening. However, if significant and lasting inflation risks arise, monetary policy will be reassessed. The Board's goal is to reduce inflation and achieve a 5% target in the medium term. Price growth is anticipated to peak around 75% in the coming months, with a projected decline to 36% by year-end.
2024-01-25
Turkey Raises Interest Rate to 42.5% as Expected
The Central Bank of Turkey increased its benchmark one-week repo rate by 250 basis points to 42.5% in December 2023, as expected, after a limited increase in headline inflation in November, consistent with the outlook presented in the last Inflation Report. The Board deemed it appropriate to moderate the pace of monetary tightening since the required level of tightness to establish disinflation had been nearly reached. The Board envisages completing the monetary tightening steps as soon as possible.
2023-12-21