Turkey interest rates: policy rate cut to 36%, bank deposit race goes on

What the central bank did. The Monetary Policy Committee of the Central Bank of the Republic of Türkiye (TCMB) cut the one-week repo auction rate from 37% to 36% on October 22, 2026. It lowered the overnight lending rate from 40% to 39% and the overnight borrowing rate from 35.5% to 34.5%. Bloomberg calls it the first cut since the Iran war began, after inflation slowed to its lowest pace in almost five years. Reuters adds that the bank held at 37% at its previous five meetings. Faiz is the Turkish word for interest.

What TCMB says. The bank says its tight stance will stay until price stability is reached, and that it decides the size and timing of steps meeting by meeting. It names high energy prices from geopolitical tensions as an upside risk to inflation. Its medium-term inflation target is 5%. If credit and deposit markets develop in unexpected ways, it promises extra macroprudential measures to support the transmission of its rate. Annual inflation is just below 30%, an S&P analyst told Reuters.

What savers see. Lists published on November 1 show lira rates well above the central bank rate. Hamle Gazetesi lists offers from 38% to 44.5% for 32 days. On 1 million lira the top offer pays 32,186 lira and the bottom one 27,485 lira, a gap of nearly 5,000 lira a month. Sözcü's table has 20 offers from 33.5% to 44%, with net gains of 18,308 to 22,078 lira on 750,000 lira. Terms and conditions differ between the lists, so compare numbers only inside one list.

Why the race goes on. Reuters quotes S&P saying that most of the money pulled out of investment funds went into lira deposits, not into foreign currency or gold. Regulators ordered the liquidation of more than 100 funds. Our reading: banks have a lot to compete for, which helps explain offers above the central bank rate. This is not a statement from the banks.

Read the conditions. According to Sözcü, some offers are campaigns for new customers, with a welcome rate for the first 90 or 95 days. And a nominal rate, with inflation just below 30% a year, does not by itself tell you what the money will buy later.

Who it touches. People with lira savings and readers who follow emerging-market rates. We do not rank banks: the offers show the state of the market and are not a recommendation.

Hechos confirmados

• On October 22, 2026 TCMB cut the one-week repo auction rate from 37% to 36%.^[1][2]
• The overnight lending rate was cut from 40% to 39% and the overnight borrowing rate from 35.5% to 34.5%.^[1][2]
• TCMB said its tight stance will be maintained until price stability is achieved and that it decides the size and timing of steps meeting by meeting.^[1]
• TCMB named elevated energy prices from geopolitical tensions as an upside risk to inflation and set a medium-term inflation target of 5%.^[1]
• TCMB said it will support monetary transmission with additional macroprudential measures if credit and deposit markets develop in unanticipated ways.^[1]
• According to Bloomberg, it is the first cut since the Iran war began, after inflation slowed to its lowest pace in almost five years.^[2]
• The rate was held at 37% at the previous five meetings.^[3]
• Annual inflation in Turkey is just below 30%, an S&P analyst told Reuters.^[3]
• An S&P analyst said most of the money withdrawn from investment funds went into lira deposits rather than foreign currency or gold.^[3]
• Regulators ordered the liquidation of more than 100 investment funds over allegations that assets were manipulated and inflated in value.^[3]
• Hamle Gazetesi published a list of 32-day deposit offers on November 1, 2026: the top 44.5% pays 32,186 lira on 1 million lira, the bottom 38% pays 27,485 lira.^[5]
• Hamle Gazetesi says the gap between the top and the bottom of its list is nearly 5,000 lira a month.^[5]
• Sözcü's November 1 table has 20 offers with rates from 33.5% to 44% and net gains of 18,308 to 22,078 lira on 750,000 lira.^[4]
• In Sözcü's table some offers are marked as campaigns for new customers, with a welcome rate for the first 90 or 95 days.^[4]

Implicaciones

• ConfirmadoTCMB decides the size and timing of rate steps meeting by meeting, so further cuts are not guaranteed.
• ConfirmadoSome deposit offers work as welcome rates for the first 90 or 95 days only.
• Nuestra lecturaBanks compete for lira deposits, including money that left investment funds, which helps explain rates above the central bank rate. This is our reading.

Todavía no se sabe

• What TCMB will decide on rates at its next meeting
• How long the highest deposit rates will last
• How much of the money from closed funds will stay in deposits
• The full terms of each bank offer

A quién afecta

Turkey, Emerging markets, World. People with lira savings and readers who follow central bank rates in emerging markets

Fuentes

1. Central Bank of the Republic of Türkiye (TCMB): Press Release on Interest Rates (2026-45) 22 de octubre de 2026 · oficial
2. Bloomberg: Turkey Cuts Interest Rate for First Time Since Start of Iran War 22 de octubre de 2026 · medios
3. Reuters: Turkey's policy shift on track despite slower disinflation, election test awaits, S&P says 23 de octubre de 2026 · medios
4. Sözcü: Bankalarda faiz yarışı kızıştı: Aylık getiri 22 bin liraya tırmandı 1 de noviembre de 2026 · medios
5. Hamle Gazetesi: Muğla'da 1 milyon TL yatıran bankadan ayda kaç TL kazanacak? En yüksek mevduat faizini veren bankalar 1 de noviembre de 2026 · medios