TCMB announced the interest rate decision for October: The policy rate has dropped.

Decision of the TCMB Monetary Policy Committee

The Central Bank of the Republic of Turkey (TCMB) announced its October interest rate decision. At today's Monetary Policy Committee (MPC) meeting, it was decided to reduce the policy interest rate (one-week repo auction rate) by 100 basis points to 39.50%. This step was an expected move by the markets; many economists had predicted that the TCMB would cut rates by this amount.

Previous Month's Interest Rate Cut

At the previous MPC meeting, in September, the policy interest rate was reduced by 250 basis points to a level of 40.50%. This step was taken to prevent economic contraction and to encourage growth, and it was shaped in line with market expectations. Second-quarter growth data and inflation figures are among the important indicators influencing the TCMB's decisions.

Economic Effects of the Interest Rate Cut

It is possible to say that this interest rate cut will have certain effects. Falling interest rates make borrowing attractive for individuals and businesses by reducing borrowing costs. Thus, an increase in investments is expected. However, the market's response and the course of inflation will be closely monitored in the coming days.

In Conclusion

TCMB's decision is part of its strategy not only for economic growth targets but also for combating inflation. Interest rate cuts may contribute to economic revival; however, careful monitoring and implementation remain necessary. The TCMB's next step will be shaped by market dynamics and international conditions.