Today’s decision to keep interest rates unchanged at 6.25% suggests that the Central Bank of Turkey (CBRT) has reached the end of its rate-cutting cycle. While policymakers’ unconventional policy response (cutting interest rates while raising banks’ reserve requirements) appears to have been successful in weakening the lira, the early signs are that it has done little to slow credit growth. As a result, further monetary tightening in the form of higher RRRs is likely in the coming months.