ISTANBUL – In a strategic move aimed at stimulating economic activities and addressing ongoing financial challenges, Turkey's Central Bank has announced a reduction in its overnight lending rate, bringing it down from 42.50% to 41.00%. This development, which took effect in December 2025, underscores the central bank's efforts to recalibrate the economic environment amidst fluctuating market conditions.
The cut follows a previous decision in October 2025 when the rate had been pegged at 42.50%. This latest adjustment could be indicative of Turkey's commitment to fostering a more conducive atmosphere for borrowing and investment. The decision to lower the rates may facilitate increased liquidity within the Turkish market, potentially encouraging both consumer spending and business investments.
This reduction comes during a time of intricate economic dynamics within the country, as policymakers aim to balance inflationary pressures with growth incentives. As revealed in the most recent update on 11 December 2025, the central bank's initiative appears targeted at ensuring economic stability while also paving the way for potential recovery and growth in the upcoming fiscal periods. The financial community will be closely monitoring the impacts of this rate change, gauging its effectiveness in achieving the desired economic outcomes.
