Turkey interest rate cut to 36% in October 2026

Turkey's central bank cut its policy rate to 36% on 22 October 2026, a 100 basis point move, and the overnight corridor now runs from 34.5% to 39%.

The facts

The Monetary Policy Committee cut the one-week repo auction rate to 36% from 37% on 22 October 2026, a reduction of 100 basis points.
The overnight lending rate fell to 39% from 40% and the overnight borrowing rate to 34.5% from 35.5%, each by the same 100 basis points.
The committee stated that domestic demand remains weak, citing data on economic activity and the limited pass-through of supply shocks.
Energy prices tied to geopolitical tensions were named as an upside risk to inflation.
The committee said future rate decisions will be taken meeting by meeting, and that it would tighten again if the inflation outlook deteriorated “significantly and persistently”.
The medium-term inflation target was restated at 5%.

Borrowing in lira got 100 basis points cheaper, nothing more. The corridor still runs from 34.5% to 39%.
The lira-versus-dollar gap is where the return actually sits: Glopra's Turkey data show a median 928 US dollars per square metre, a 7.8% gross rental yield, and house prices up 25% in lira but 5.7% in dollars over a year.
Nothing in this decision reaches beyond the next meeting. The committee said it decides meeting by meeting and would tighten again if the inflation outlook deteriorated “significantly and persistently”, so an owner weighing lira debt against dollar rental income has 100 basis points to work with and no stated path.

The committee said a summary of the meeting will be released within five working days.
Credit and deposit markets are the channel to follow: the committee said it would use additional macroprudential measures there in case of unanticipated developments.

Sources: TCMB https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Announcements/Press+Releases/2026/ANO2026-45