FX.co ★ Turkey's Overnight Borrowing Rate Sees Decline to 36.5% in December

In a notable shift in Turkey's monetary policy, the country's overnight borrowing rate has been adjusted from 38.00% to 36.50% as of December 2025. This adjustment follows the previous benchmark set in October 2025 and presents a strategic move by Turkish financial authorities to stimulate economic activity by easing borrowing conditions.

The decision to lower the rate reflects the country's ongoing efforts to balance its inflation targets with the need for economic growth. A reduction in the overnight borrowing rate often signals an attempt to encourage spending and investment by making it less expensive for banks to borrow overnight, potentially leading to a decrease in lending rates for consumers and businesses.

As the Turkish economy navigates through domestic and international economic challenges, the adjustment in the overnight borrowing rate will be closely monitored to assess its impact on inflation and growth dynamics. Financial analysts and investors will be keenly observing subsequent monetary policy decisions for further insights into Turkey's economic direction. The data reflecting this change was last updated on December 11, 2025, marking a pivotal moment in the country's economic strategy.