The Central Bank of the Republic of Türkiye raised its one-week repo rate by 350 basis points to 46.0% on 17 April 2025. It also raised the overnight lending rate to 49.0% from 46.0% and the overnight borrowing rate to 44.5% from 41.0%.
The increase reversed part of the easing the bank had delivered since December 2024 and followed an interim meeting in March, when it tightened its rate corridor after market volatility and pressure on the lira.
TIGHT STANCE TO SUPPORT DISINFLATION
The Monetary Policy Committee said a decisive tight monetary stance would strengthen disinflation through moderating domestic demand, a real appreciation of the lira and improving inflation expectations. It noted that the underlying trend of inflation improved in March, but said inflation expectations and pricing behaviour still posed risks.
Sources: CBRT, press release on interest rates, 17 April 2025.
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