Turkiye lowers key interest rate by 2.5 pps to 42.5%; 3rd cut in a row

07 Mar '25

1 min read

Turkiye lowers key interest rate by 2.5 pps to 42.5%; 3rd cut in a row

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Turkiye's central bank yesterday lowered its key interest rate by 2.5 percentage points—its third cut in a row—reacting to a slowdown in inflation.
The bank's monetary policy committee lowered its benchmark one-week repo rate from 45 per cent to 42.5 per cent.
“While inflation expectations and pricing behaviour tend to improve, they continue to pose risks to the disinflation process,” it said.

Turkiye’s central bank yesterday lowered its key interest rate by 2.5 percentage points—its third cut in a row—reacting to a slowdown in domestic inflation.

The bank’s monetary policy committee lowered its benchmark one-week repo rate from 45 per cent to 42.5 per cent.

Official data showed annual inflation dipped below 40 per cent for the first time in close to two years. It slowed to 39.1 per cent in February from 42.1 per cent in the previous month.

The bank would review inflation trends and adjust rates cautiously in upcoming policy meetings, it said in a statement after the review meeting.

“While inflation expectations and pricing behaviour tend to improve, they continue to pose risks to the disinflation process,” the central bank said.

“Monetary policy tools will be used effectively in case a significant and persistent deterioration in inflation is foreseen,” it noted.

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