Turkey's Central Bank has reduced its overnight lending rate from 41.00% to 40.00% in a strategic move aimed at alleviating economic pressures. This adjustment comes into effect in January 2026, as per the latest update on January 22, 2026.
The reduction marks the bank's continued efforts to stimulate the Turkish economy, following a period of maintaining the previous rate of 41.00% throughout December 2025. By easing the overnight lending rate, the central bank signals its intent to support borrowing and liquidity in the financial markets, potentially stimulating economic activities amidst ongoing inflation challenges.
This rate change is part of a broader monetary policy approach to balance economic growth with financial stability, as Turkey navigates complex economic conditions. Market observers are keenly watching the central bank's policies to understand their impact on inflation, currency stability, and broader economic growth in the months ahead.
