The Central Bank of the Republic of Turkey (CBRT) has reduced its policy interest rate by 250 basis points, lowering it from 47.5% to 45%. This marks the second consecutive rate cut, with a total reduction of 500 basis points over the last two months.

The decision was widely anticipated by markets. In a survey conducted by AA Finance, all 17 participating economists predicted a 250 basis point cut, bringing the rate to 45%. Similarly, a BloombergHT survey of 25 institutions forecast the same reduction.

The CBRT’s decision was in line with these expectations.

In December 2024, the Central Bank reduced the policy interest rate from 50% to 47.5%, marking the first cut in nearly two years. This followed six months of maintaining a steady rate. Turkey’s Central Bank had increased........

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