Central Bank of Turkey lowers key interest rate to 39.5%

On October 23, 2025, the Central Bank of Turkey reduced its main interest rate to 39.5%. The decision was made during a board meeting and involved a 100 basis point cut from the previous level of 40.5%.

The board also lowered the overnight lending rate from 43.5% to 42.5% and the overnight borrowing rate from 39% to 38%.

In its official statement, the bank noted that “the underlying trend of inflation has increased.” According to the regulator, recent data show that demand conditions remain conducive to price decoupling, but the pace of disinflation has slowed.

The Central Bank pointed out that recent price movements, especially in the food category, through the channels of inflation expectations and pricing behavior, are increasing risks to the disinflation process.

The news, published on October 23, 2025, reflects official data from the regulator’s decision. It may be of interest to residents of Northern Cyprus monitoring interest rate dynamics and regional economic developments.