FX.co ★ Turkey Lowers Overnight Lending Rate to 46% Amidst Economic Reforms

In a strategic financial maneuver, Turkey has adjusted its overnight lending rate, reducing it from 49% to 46% as of July 2025. This change, officially updated on July 24, 2025, comes a month after the previous rate was cemented at its peak in June.

The adjustment reflects the Turkish central bank's ongoing efforts to stabilize the national economy and control inflation, providing relief to both borrowers and financial institutions. By easing the overnight rate, the central bank aims to spur economic growth by making borrowing cheaper and more accessible for businesses and consumers alike. However, this move indicates a delicate balancing act as authorities navigate the complexities of inflation and sustainable economic expansion.

Market analysts are closely watching the impact of this rate cut on Turkey's broader economic landscape, considering it a pivotal step in the government's broader economic reforms. The decision highlights a concerted effort to recalibrate monetary policies in response to shifting economic conditions, with hopes of fostering a more conducive environment for investment and development in the coming months.