The Central Bank of Turkey held its benchmark interest rate at 46% in its June 2025 meeting following the unexpected, 350bps hike from its last decision, aligning with market expectations. Policymakers at the monetary authority. noted that inflationary pressures eased since April while risks against Turkish growth were more pronounced, largely due to heightened uncertainty in the global macroeconomy amid protectionist trade policies and geopolitical tension. The central bank noted that the current level of interest rates are also high enough to prevent further pressure on their capital accounts that could trigger plunges in the lira. Exchange rate stability was previously noted as a priority for the central bank, which aggressively lifted interest rates in April after political conflicts between President Erdogan and the mayor of Istanbul triggered a plunge in the domestic currency.
