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Turkey's Central Bank Cuts Policy Rate by 100bps to 39.50%, as Expected

BY MT Newswires | ECONOMIC | 10/23/25 09:59 AM EDT

09:59 AM EDT, 10/23/2025 (MT Newswires) -- Turkey's central bank (CBT) Thursday said its Monetary Policy Committee decided to reduce the policy rate -- the one-week repo auction rate -- by 100bps to 39.50%, as expected.

The MPC also lowered the Central Bank overnight lending rate from 43.50% to 42.50% and the overnight borrowing rate from 39.0% to 38.0%.

"The underlying trend of inflation increased in September," wrote the CBT in its policy statement.

The risks posed by recent price developments, particularly in food, to the disinflation process through inflation expectations and pricing behavior have become more pronounced, added the central bank.

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