The Central Bank of the Republic of Turkey (CBRT) announced its interest rate decision for April. The CBRT, which will hold 8 Monetary Policy Committee meetings this year instead of 12, announced the first interest rate decision of the year in January, reducing the rate by 250 basis points to 45%. Revealing the second interest rate decision of the year in March, the CBRT further reduced the rate by 250 basis points to 42.5%. Investors were curious whether the Central Bank would make the third interest rate reduction of the year. So, what was the Central Bank’s interest rate decision for April, percentage? Did the Central Bank cut interest rates, and what would happen if the policy rate rises? The April Central Bank’s Monetary Policy Committee (MPC) interest rate decision was eagerly awaited by those closely following economic news. The critical interest rate decision was announced. Ahead of the Central Bank interest rate decision, which directly affects dollar, gold, stock exchange, and deposit interest investments, economists had announced that the interest rate expectation would remain stable. So, what was the Central Bank’s interest rate decision for April, percentage? Did the interest rate cut come? The Central Bank of the Republic of Turkey (CBRT) Monetary Policy Committee announced the eagerly awaited April 2025 interest rate decision. The Central Bank of the Republic of Turkey Monetary Policy Committee raised the policy rate, the one-week repo auction interest rate, by 350 basis points to 46%. AA Finans’ survey of expectations for the Monetary Policy Committee (MPC) meeting, which will be held on April 17th, involved the participation of 21 economists. While 19 of the economists participating in the expectation survey predicted that the policy rate would be kept stable, 2 predicted a 350 basis point increase. The median of economists’ expectations for the April MPC decision was that it would remain stable at 42.50%. The median of economists’ year-end policy rate expectations was 34.50%. At the MPC meeting held in March, the policy rate was reduced by 250 basis points from 45% to 42.5%. During the interim meeting held by the CBRT last month, it was kept stable at 42.5%, while the overnight borrowing interest rate was raised to 46%.Loan Interest Rates IncreaseWhen banks’ borrowing costs from the central bank rise, the interest rates on individual and commercial loans, such as consumer, vehicle, and housing loans, also rise. Consumption and Investment DecreaseWhen interest rates increase, borrowing becomes more expensive. This reduces people’s spending and companies’ investment appetite. Economic slowdown might be observed. Inflation Pressure DecreasesAs spending and demand decrease, price increases slow down. Therefore, central banks prefer to raise the policy rate to fight inflation.Savings IncreaseAs deposit interest rates rise, people may prefer to keep their money in the bank instead of spending it, supporting the fight against inflation.Exchange Rate May Decrease (TL May Appreciate)Foreign investors flock to the Turkish Lira to take advantage of the high interest rates. With lower demand for foreign currency, the exchange rates of currencies like the dollar and euro may decrease.Stock Market Can Be Negatively AffectedIn a high-interest environment, interest in risky investment instruments decreases, which can lead to a decline in stock market indices.Government Borrowing Costs IncreaseThe Treasury’s internal and external borrowing costs rise. This happens because bond yields increase, adding an extra burden to the budget.