FX.co ★ Turkey Lowers One-Week Repo Rate to 42.50% Amid Economic Recalibration

In a strategic move that signals a recalibration of its economic policy, Turkey has adjusted its one-week repo rate, reducing it from 45.00% to 42.50%. This shift, which marks a significant policy decision by the country's central bank, took effect in February 2025. The update was officially reported on March 6, 2025.

The decision to lower the benchmark rate comes amid ongoing efforts by Turkish officials to address inflation and stabilize the country's volatile market environment. Facing pressures both domestically and internationally, Turkish monetary authorities are steering the economy towards a more stable growth path by adjusting key interest rates to influence inflation rates and stimulate economic activity.

This recent adjustment is perceived as part of a broader strategy to reduce the financial burden on businesses and consumers, thereby fostering an environment conducive to investment and economic expansion. As Turkey navigates these economic transitions, analysts are keenly observing the outcomes of such monetary policy maneuvers and their potential impact on the country's economic trajectory in the coming months.