TURKEY: Interest Rate Cuts & more – 28th Oct 2025

Merhaba from BA! This is the Rorshok Turkey Update from the 28th of October twenty twenty-five. A quick summary of what's going down in Turkey.

On Saturday the 25th, President Erdogan urged the United States and other major powers to pressure Israel to respect the Gaza cease-fire agreement. He argued that Israel was continuing violations while the Palestinian side (represented by Hamas) kept its commitments, so measures such as sanctions or stops to arms sales should be considered. Turkey’s increasing role as a mediator in the Gaza conflict was evident, but also exposed the limits of its influence.

Meanwhile, on Friday the 24th, a court dismissed a case aimed at ejecting Özgür Özel, the leader of the Republican People’s Party or CHP, from his position, and annulling the party’s twenty twenty-three congress where Özel was elected. The court found the challenge lacked substance and allowed Ozel to remain in charge.

For the opposition and many citizens, the decision offered a momentary relief and raised hopes of fairer judicial treatment. However, critics said the broader pattern of legal action against opposition parties still casts a long shadow.

The decision also boosted investor confidence with stock markets rising and the lira gaining value slightly.

In other news, on Thursday the 23rd, the Central Bank lowered its policy interest rate by 1% to 39.5%, a smaller cut than in previous months which stood at over 2%. The move showed the bank is being more careful after months of rapid rate changes. Officials said prices are still rising fast, especially since September, so they don’t want to loosen policy too much.

For citizens, this means loans might still be costly, and saving money in lira may not get easier anytime soon. Financial markets had expected an even smaller change, so the decision was seen as the bank trying to find a middle ground between keeping the economy growing and keeping prices under control.

On a related note, Social surveys showed rising concern among Turkish households about living costs, despite recent rate cuts. Many people posted on social platforms that grocery bills, energy, and fuel expenses continue to climb faster than wages. Economists noted that, while headline inflation shows signs of easing, core costs and services remain sticky.

Analysts warn that the central bank’s rate cut may fuel further inflation if supply-side stress persists. The lived experience of many citizens is one of stretching budgets and declining purchasing power, which turns macro-economic numbers into daily hardship and drives commentary across social networks.

On a tragic note, on Friday the 24th, at least fourteen migrants drowned after a rubber boat carrying them sank off the western province of Muğla. The boat reportedly carried eighteen people and sank early morning; rescuers recovered fourteen bodies and one survivor.

For Turkey, which hosts millions of refugees and sits along major migration routes, the tragedy highlights the ongoing human costs of irregular crossings and the strain on coastal rescue services. The incident triggered social media discussions about search‐and‐rescue capability, the legal status of migrants and the role of Turkey in broader migration flows towards Europe.

Speaking of migrants, on Sunday the 26th, Germany’s federal government released new data showing a sharp rise in deportations, with Turkey listed as the top destination country. Between January and September, German authorities deported more than 17,000 people, up from about 14,700 in the same period last year. Of these, 1,614 were sent to Turkey, followed by 1,379 to Georgia. The German government said it aims to meet bilateral agreements with the Turkish government, but NGOs in Turkey warned of potential human rights risks and inadequate reintegration support.

The development matters for Turkey’s image as both a host country for migrants and as a partner in European migration-management frameworks. The news sparked mixed reactions on social media, as it raised questions about whether it was cooperation between the two governments or an invitation for migrants.

Also on Sunday the 26th, the Kurdistan Workers’ Party or PKK, which the government, along with the United Nations, views as a terrorist organization, announced that it would withdraw its fighters from Turkey and relocate them to northern Iraq, advancing a long-term peace process. The decision, endorsed by jailed leader Abdullah Ocalan, marks a major step after decades of insurgency that cost tens of thousands of lives.

Turkish officials described the move as a significant milestone towards achieving their terror-free goal, but they also warned of potential provocations and the need for cautious monitoring.

For communities in southeastern Turkey, this could mean fewer clashes and more stability — though many remain skeptical that reforms for Kurds on rights, language and political inclusion will follow.

On Monday the 27th, the foreign ministry announced that Turkey will send its first senior ambassador to Syria since twenty eleven, signaling a shift in the country’s policy toward Syria. The appointment aims to normalize ties, explore economic opportunities and address security issues linked to border-region instability. Syrian-Turkish trade and border-control cooperation may expand under the new diplomat.

The decision sparked mixed reactions on Turkish social media: some welcomed re-engagement, but it also raised questions about whether cooperation with Syria might compromise Turkey’s position on human rights and refugee issues.

In environmental updates, on Monday the 27th, a new social-media wave emerged around Turkey’s national parks after leaked maps showed planned expansions of tourism and hotel zones inside protected areas. The proposed changes would allow private companies to build in zones previously reserved for nature. Environmentalists called the move “green-lighting destruction,” while government officials defended it as development and jobs.

The debate lit up Instagram and Twitter feeds, with users posting side-by-side images of wild terrain and hotel renderings.

If passed, citizens may see more resorts near national park forests—but also possible losses of green spaces and biodiversity.

On Tuesday the 28th, seventeen restorers and conservators working on the restoration of Istanbul’s historic Sirkeci Train Station said they were dismissed via a text message during their lunch break. According to the Cumhuriyet newspaper, another seventeen workers resigned after learning that there were more dismissals coming.

Workers told the paper that the authorities were bringing in a new team that was restoring the Beylerbeyi Palace after an executive from the construction company replaced the existing staff with their own crew. One restorer said the new team lacked experience.

One of the archaeologist-restorers posted about the dismissals on social media, saying the team’s professional efforts and years of dedication had been disregarded. The issue also highlighted that merit no longer matters.

Changing gears, Turkey’s jewelry-exporting sector came under pressure after reports of abuse of export-incentive schemes. Observers say companies exploited tax breaks and refunds intended to boost global sales, leading to unsustainable practices and the risk that the government may introduce new rules that would make business harder. The industry fears job losses and falls in production if the government tightens rules.

For the economy, the timing is difficult: the manufacturing base already faces weak demand, currency pressure and higher costs. Many workers in the sector took to social media to complain of delayed payments and uncertainty.

And for our final update, on Wednesday the 29th, Turkey will celebrate Republic Day, marking 102 years since the founding of the Republic in nineteen twenty-three. The day honors Atatürk, the founder of the Turkish Republic, who led the country’s transformation from the Ottoman Empire to a modern republic.

On that day, businesses and schools will be closed. Across Turkey, schools, streets, and government buildings will be decorated with Turkish flags and pictures of Atatürk. In Ankara, the official ceremony at Anıtkabir, Atatürk’s mausoleum, will include a wreath-laying and speeches by political and military leaders.

Parades, concerts, and cultural performances will take place in cities and towns nationwide. Citizens attend these events to pay their respects and celebrate national unity.

Aaand that’s it for this week! Thank you for joining us!

Did you know that we talk about many places besides Turkey? We’ve got nine country updates! We also have three non-sovereign shows, about the Ocean, the Arctic and Multilateral organizations. Interested? Check out the link in the show notes. Got any feedback? You know where to contact us.

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