In a recent monetary policy move, the Central Bank of Turkey has lowered its one-week repo rate from 38.00% to 37.00%. The decision, occurring in January 2026, marks the first change in the rate since December 2025, when it was previously increased to its earlier level.
The reduction in the one-week repo rate is aimed at enhancing economic activity by reducing borrowing costs in the country. Such a decision is often indicative of the central bank's intent to stimulate economic growth, counter inflationary pressures, or address other prevailing economic conditions that may have warranted further easing of monetary policy.
This adjustment in the repo rate comes amid ongoing discussions about Turkey's inflation trajectory and its effects on overall economic stability. By reducing the rate by 1%, the Central Bank of Turkey appears committed to managing the delicate balance between stimulating the economy and maintaining control over inflation. The updated data, released on 22 January 2026, offers insight into how Turkish policymakers are navigating the current economic landscape to foster growth and stability.
