The Central Bank of the Republic of Turkey cut its key interest rate by 100 basis points to 36% from 37% at its Monetary Policy Committee meeting on Thursday, 22 October 2026, its first rate cut in several months.

The bank said recent inflation data and leading indicators confirm a slowdown in the underlying inflation trend, which formed the basis for its decision to cut rates at the meeting.

The decision lowered the one-week repo rate, Turkey's main policy rate, by one percentage point, equivalent to 100 basis points.

The cut was in line with the expectations of most economists in a Matriks survey, with 32 of 37 economists forecasting a reduction from 37% to 36% at the October meeting.