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2025 was an extraordinary year of challenges for the Turkish Economy
Despite heightened political uncertainty beginning in March 2025, the Turkish economy closed the year with 3.6% growth, supported by determined macroeconomic policies aimed at reducing inflation.
Policy Rate Changes Although the Turkish economy continued to grow in 2025, the Turkish lira depreciated by 21.5% against the US dollar. Inflation maintained its downward trajectory throughout the year, declining from 44.38% at the end of 2024 to 30.89% by year-end 2025, as the disinflation process gained momentum. Following the decline in consumer price inflation and the policy rate cut at the beginning of the year, the Central Bank of the Republic of Türkiye (CBRT) raised its policy rate in March in response to financial market volatility triggered by political developments. As inflationary pressures eased, the CBRT resumed rate cuts in July and continued its gradual easing cycle through year-end. Throughout the year, the Bank also introduced a range of regulatory measures to strengthen monetary policy transmission and support macro-financial stability