In an unexpected move this April, the Central Bank of the Republic of Turkey (CBRT) announced an increase in the one-week repo rate to an eye-watering 46.00%. This marks a significant uptick from the previous rate of 42.50% set in March 2025. The decision, disclosed on April 17, 2025, underscores Turkey's continued battle with persistent inflationary pressures.
The latest adjustment in the one-week repo rate reveals the bank's aggressive posture towards reigning in inflation, which has remained stubbornly high in recent months. This strategy illustrates the CBRT's commitment to stabilizing the Turkish lira and curbing price surges, which have posed challenges for both consumers and businesses across the nation.
Economic experts suggest that this decisive move might have far-reaching consequences on borrowing costs, potentially impacting various sectors dependent on credit, from real estate to consumer goods. As the Turkish economy adapts to this latest monetary adjustment, all eyes remain on the bank's next steps to ascertain the long-term effectiveness of its inflation combat measures.
