The Central Bank of the Republic of Turkey reduced its policy rate to 43.00% at its July 2025 meeting, resuming the easing cycle that had been interrupted by an emergency tightening episode earlier in the year. Turkey has maintained a restrictive monetary stance since embarking on an orthodox policy pivot in 2023.
INFLATION BACKGROUND
Annual inflation in Turkey rose above 80% at its height.
The emergency rate hike interrupted the cutting cycle earlier in 2025.
The bank reiterated its commitment to maintaining a monetary stance that supports the continuation of the disinflation process while keeping financial stability in view.