The Central Bank of Turkey slashed its one-week repo auction rate by 100bps to 15% during its November meeting, following a 200bps cut in October and a 100bps cut in September. The move was expected after Turkish President Erdogan, who backs an unconventional theory that high rates cause inflation, vowed to fight for lower rates as the country grapples with inflation at near 20%, well above the mid-point target of 5% and the lira is down almost 11% in November. The Committee said it expects that the transitory effects of supply-side factors and other factors beyond monetary policy’s control on price increases will persist through the first half of 2022 and it will consider to complete the use of the limited room implied by these factors in December. source: Central Bank of the Republic of Turkey

Interest Rate in Turkey averaged 58.20 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 November of 2021.

Interest Rate in Turkey is expected to be 15.00 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 12.50 percent in 2022, according to our econometric models.

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Turkey Interest Rate


Calendar GMT Actual Previous Consensus TEForecast
2021-09-23 11:00 AM TCMB Interest Rate Decision 18% 19% 19% 19%
2021-10-21 11:00 AM TCMB Interest Rate Decision 16% 18% 17.5% 18%
2021-11-18 11:00 AM TCMB Interest Rate Decision 15% 16% 15% 15%
2021-12-16 11:00 AM TCMB Interest Rate Decision 15%
2021-12-23 11:00 AM MPC Meeting Summary


Related Last Previous Unit Reference
Interest Rate 15.00 16.00 percent Nov/21
Money Supply M1 1545916598.40 1460962167.00 TRY Thousand Oct/21
Money Supply M2 4185599275.70 3979899055.10 TRY Thousand Oct/21
Money Supply M3 4310095172.30 4099967506.90 TRY Thousand Oct/21
Foreign Exchange Reserves 87920.00 86700.00 USD Million Nov/21
Banks Balance Sheet 6773944233.00 6682893014.00 TRY Thousand Aug/21
Loans to Private Sector 1919018227.00 1856070525.00 TRY Thousand Sep/21
Deposit Interest Rate 13.50 13.50 percent Nov/21
Lending Rate 16.50 17.50 percent Nov/21
Central Bank Balance Sheet 1839852798.00 1713061715.00 TRY Thousand Oct/21
Cash Reserve Ratio 23.00 21.00 percent Sep/21
Foreign Stock Investment 22048.00 21255.00 USD Million Aug/21

News Stream
Turkey Cuts Rates for 3rd Successive Month
The Central Bank of Turkey slashed its one-week repo auction rate by 100bps to 15% during its November meeting, following a 200bps cut in October and a 100bps cut in September. The move was expected after Turkish President Erdogan, who backs an unconventional theory that high rates cause inflation, vowed to fight for lower rates as the country grapples with inflation at near 20%, well above the mid-point target of 5% and the lira is down almost 11% in November. The Committee said it expects that the transitory effects of supply-side factors and other factors beyond monetary policy’s control on price increases will persist through the first half of 2022 and it will consider to complete the use of the limited room implied by these factors in December.
2021-11-18
Turkey Surprises with 200bps Rate Cut
The Central Bank of Turkey slashed its one-week repo auction rate by 200bps to 16% during its October meeting, defying market expectations of a 50bps cut. It follows a 100bps rate cut in September. The move comes at a time when the country grapples with inflation above 19%, well above the mid-point target of 5% and the lira changes hands at over 9.3 to the dollar, the lowest on record. The tightness in monetary stance has started to have a higher than envisaged contractionary effect on commercial loans. In addition, strengthened macroprudential policy framework has started to curb personal loan growth. Nevertheless, the Committee assessed that, till the end of the year, supply-side transitory factors leave limited room for the downward adjustment to the policy rate. In order to contain climate-based and other environmental risks, the Committee also decided to support sustainable finance initiatives as a long-term policy without prejudice to the main objectives of monetary policy.
2021-10-21
Turkey Unexpectedly Lowers Rates
The Central Bank of Turkey lowered its one-week repo rate by 100 bps to 18% during its September meeting, contrary to expectations that rate would be left unchanged, claiming that the tightness of the monetary policy stance had created a larger-than-expected contractionary effect on commercial loans. Additionally, the central bank said it was committed to strengthen the macroprudential policy framework to curb personal loan growth. Policymakers noted that the increase in inflation was still transitory and driven by the rise in food and import prices, due to supply constraints and an expansion in demand following the reopening of the economy. The committee added that domestic economic activity remained strong in Q3, supported by external demand, while the quickening vaccination drive enabled a faster recovery in services, tourism and related sectors.
2021-09-23

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.