Türkiye Cuts Its Policy Rate to 36%: What It Means for Foreign Buyers

ByMulti Mulk Newsdesk·Published on:25 October 2026·5 min read

The Central Bank of the Republic of Türkiye (CBRT) has started cutting rates again. In its 22 October decision, the Monetary Policy Committee lowered the one-week repo auction rate from 37% to 36%. For foreign buyers of Turkish property, the cut matters mainly through the lira, the cost of local credit and the pace of price growth. It does not change the rules for buying.

What the central bank decided

The CBRT also lowered its overnight lending rate from 40% to 39%, and its overnight borrowing rate from 35.5% to 34.5%, according to the same official press release. The size of the move, 100 basis points, was in line with expectations, as Hürriyet Daily News reported.

The decision follows a long pause. Turkish Minute reported that the bank held at 37% for a fifth consecutive meeting in September, citing energy prices linked to the conflict involving Iran. BigGo Finance describes October's cut as the first since January.

The wording of the statement is as important as the number. The committee said recent inflation figures and leading indicators confirm a slowdown in the underlying trend, and that weak domestic demand and limited pass-through of supply shocks point the same way. It also said elevated energy prices remain an upside risk to inflation. It added that the tight stance will be maintained until price stability is achieved, and that policy would be tightened if the inflation outlook deteriorated significantly and persistently. Decisions will be taken meeting by meeting.

Item	Before	After

| --- | --- | --- |

One-week repo (policy) rate	37%	36%

Overnight lending rate	40%	39%

Overnight borrowing rate	35.5%	34.5%

The real rate is still high

Headline inflation gives the cut context. BigGo Finance reports September consumer inflation at 29.73% year on year, its fourth straight monthly slowdown. We covered that release in our inflation note. Subtracting that figure from the new policy rate leaves a gap of roughly six percentage points. This is a simple back-of-envelope comparison and not an official measure of the real rate. It shows that policy remains restrictive even after the cut, which fits the CBRT's own language.

The same BigGo report cites market expectations of another 100-basis-point cut in December and a path towards 33% by the end of March 2027. These are forecasts from that publication's summary, not CBRT commitments. The central bank has said it will decide meeting by meeting, so treat the path as an expectation that could change.

What it means for a foreign buyer

A wooden model house, keys and a printed document on a blue surface — Rate cuts affect financing costs and sentiment, but a purchase still turns on contract terms and price. · Photo: OleksandrPidvalnyi / Pixabay

Financing. The policy rate is an input to bank lending rates, not the rate a buyer pays. This note has not examined current Turkish mortgage pricing, and lenders set their own terms. Many foreign purchasers pay in cash or in foreign currency, so for them the more relevant effects are indirect: sentiment among Turkish buyers, developer pricing and the lira.

The lira. Lower rates reduce the return on holding lira deposits, which can matter for currency expectations. Our piece on the lira on decision day set out the depreciation backdrop. Buyers converting dollars, euros or dirhams should treat the exchange rate on the day of transfer as a real cost. It can easily outweigh the value of a rate move.

Prices. Our earlier analysis found that house prices have lagged inflation for nine months. The same data showed that the decline in real terms is not uniform across cities, and the city price comparison shows how wide the spread is. Lower borrowing costs could support domestic demand over time, but the CBRT itself describes domestic demand as weak. Nothing in the decision guarantees a direction for prices.

Volumes. Home sales fell 9.3% in September while foreign purchases rose 9.9%, the pattern we have been following. A single rate cut is unlikely to change that on its own. A sustained easing cycle would be a different matter, and the data to watch is the monthly TurkStat release.

Dense apartment blocks across an Istanbul district under a grey sky — Housing stock across Istanbul: price movements differ sharply by district and building type. · Photo: mostafa_meraji / Pixabay

What has not changed

The rate decision does not alter the transaction rules. The secure payment system for property sales is due to start on 1 December, and buyers signing in the coming weeks should understand how it affects contract steps and payment routes. Our contract steps guide explains the sequence.

The cut also has no bearing on the thresholds for Turkish citizenship by investment, which are set separately. The CBRT's decision is about monetary policy, not residency or citizenship criteria.

Questions to put before buying

Is the price negotiable in light of the rate path, and is it quoted in lira or foreign currency?

What exchange rate will apply to each instalment, and who bears the conversion cost?

Has the title deed, valuation and building status been independently checked?

Does the contract anticipate the 1 December payment rules if completion falls after that date?

If the property is meant to support a citizenship or residence application, does it meet the current rules for that route?

Multi Mulk advises on buying property in Türkiye and carries out due diligence and buyer protection checks before a purchase. For buyers whose goal is a passport, Multi Mulk also offers a free written Turkish citizenship eligibility review. Rules and market conditions change, and decisions depend on individual circumstances, so speak to an adviser through our contact page before committing funds.

What to watch next

The CBRT said it will publish a summary of the meeting within five working days. That document usually gives more detail on how the committee weighs inflation, demand and energy prices. The next inflation print, the next TurkStat house sales release and the December meeting will show whether this was the start of a steady easing cycle or a single step.

Sources

Cover photo: StockSnap on Pixabay.