The Central Bank of Turkey increased its benchmark interest rate to 46% on April 17, 2025, marking a shift towards monetary tightening after a period of rate cuts. This decision comes in response to growing economic concerns.
The bank also raised the overnight lending rate to 49% and the overnight borrowing rate to 44.5%. This adjustment follows three consecutive rate cuts since December, during which the benchmark rate was lowered from 50% to 42.5% as inflation eased.
The central bank's Monetary Policy Committee stated that a tight monetary policy stance will be maintained to achieve a lasting decline in inflation and price stability. The move aims to address risks stemming from inflation expectations and pricing behavior.