- Decision
- Maintain
- Rate change
- 0 bps
- one-week repo auction rate
- 37%
The Central Bank of Türkiye’s Monetary Policy Committee kept the one-week repo rate at 37.0% on 22 April, with the overnight corridor unchanged at 35.5%–40.0%, citing a March decline but an expected April uptick in the underlying inflation trend, elevated and volatile energy prices amid geopolitical tensions, and signs of a slowdown in economic activity. After hiking to 46% in April 2025, the Committee has delivered a net 900 bp of cuts and has held the rate since January 2026. The corridor and other liquidity tools will continue to be used to secure firm monetary transmission, and macroprudential measures will be added if credit or deposit dynamics threaten that transmission. The Committee reiterated that tight policy will remain in place until the 5% medium-term inflation target is secured and signalled readiness to tighten further should a “significant and persistent” deterioration in the inflation outlook emerge.
Rate evolution
From June 2025 to April 2026, the policy rate fell by 900 basis points from 46% to 37%, after an initial hold, through successive cuts before the Committee paused in March and April 2026 and held the rate through July 2026 and in its latest decision. The reductions were driven by an overall softer underlying inflation trend and demand conditions judged to be disinflationary, while the Committee said tight monetary conditions, Turkish lira appreciation and improving inflation expectations would support disinflation, even as food prices, service items with high inertia, inflation expectations and pricing behaviour remained risks and external uncertainty was initially monitored mainly through geopolitical developments and trade protectionism.
In the later decisions, the Committee kept the rate at 37% as geopolitical uncertainty intensified and energy prices remained elevated, while recent inflation figures and leading indicators suggested that the underlying trend of inflation was decelerating despite monthly fluctuations. Data on economic activity and the limited pass-through of supply shocks to domestic prices confirmed weak domestic demand, but elevated energy prices posed an upward risk to inflation. The Committee reiterated that policy would remain tight until price stability is achieved, that it remained highly attentive to upside inflation risks and that it stood ready to tighten in case of a significant and persistent deterioration in the inflation outlook.