The Central Bank of the Republic of Turkey reduced interest rates by 50 basis points today (February 19) despite rising inflation, taking real interest rates further into negative territory.

As a result, the one-week repo rate is now at 10.75%. Turkish real interest rates were already negative in January. In that month, the central bank’s monetary policy committee (MPC) cut policy rates to 11.25%, while December’s year-on-year inflation rate was 11.84%.

In January, year-on-year inflation in