Türkiye's central bank cuts its policy rate to 36% from 37%

Serguey Asael Shinder29 October 2026, 09:281 min read

The Central Bank of the Republic of Türkiye cut its policy rate, the one-week repo auction rate, from 37% to 36% at its Monetary Policy Committee meeting on 22 October. It also lowered the overnight lending rate from 40% to 39% and the overnight borrowing rate from 35.5% to 34.5%.

The Committee said recent inflation figures and leading indicators confirm a deceleration in the underlying trend of inflation despite monthly fluctuations, and that data on activity and the limited pass-through of supply shocks to domestic prices show domestic demand remains weak. It named elevated energy prices from ongoing geopolitical tensions as an upside risk to the inflation outlook and said it is monitoring their effect through costs, activity and expectations.

The statement keeps the bank's framework language: a tight stance will be maintained until price stability is achieved, the policy rate will be set to ensure the tightness required by the projected disinflation path in line with interim targets, and the size and timing of steps will be decided meeting by meeting. Additional macroprudential measures may be used if credit and deposit markets develop unexpectedly. The medium-term target remains 5% inflation, and a summary of the meeting is due within five working days.

What it means

A one-point cut from 37% keeps real policy tight while acknowledging slowing inflation and weak demand. The energy-price warning is the constraint: the CBRT is easing while oil prices are elevated, and its own statement leaves room to slow or pause if that shock passes through to prices. The meeting summary will show how much weight that risk carried.