Türkiye’s leading business association MÜSİAD has called on the Central Bank to resume interest rate cuts without delay, warning that waiting until September would be too late for the economy.
Speaking to CNBC-e on Tuesday, Burhan Özdemir, President of the Independent Industrialists and Businessmen Association (MÜSİAD), urged the Central Bank of the Republic of Türkiye (CBRT) to cut rates by 350–400 basis points in July. “If the rate cut happens in September instead of July, it would be too late,” he said.
The call comes after June inflation eased to 35.1%, less than half the rate recorded a year earlier. The decline has strengthened expectations of a renewed easing cycle, which was paused in March amid political and financial turbulence.
CBRT last cut its key rate in March, but held off on further reductions after the Turkish lira fell sharply and investor confidence was shaken following the jailing of Istanbul Mayor Ekrem Imamoğlu pending trial. The current policy rate stands at 46%, while overnight rates remain near 49%.
Özdemir argued that the real interest rate is too high in comparison to the current exchange rate. “We believe the value of the lira is not where exporters want it,” he said. “From the exporter’s point of view, [the dollar] should not fall below 45 by the end of the year.”
The Turkish lira has weakened over 11% since the beginning of 2025, trading just above 40 against the U.S. dollar on Tuesday.
Özdemir also emphasized the broader impact of high borrowing costs. “This is no longer just an issue for exporters,” he said. “The increase in the import volume index is now a concern for domestic producers as well.”
