The Central Bank of Türkiye’s Monetary Policy Committee (MPC) held the one-week repo auction rate at 37%, citing a decelerating underlying inflation trend and weak domestic demand, while flagging elevated energy prices as an upside risk. Over the past year, the policy rate fell from 43% in September 2025 to 37% in January 2026 through cumulative cuts of 600 basis points and has since been held. The MPC maintained the overnight lending and borrowing rates at 40% and 35.5%, respectively, and said it would continue to monitor liquidity closely, use liquidity tools effectively and deploy additional macroprudential measures if unexpected credit or deposit market developments impair transmission. Recent inflation readings and leading indicators point to disinflation despite monthly fluctuations, while economic activity data and limited pass-through from supply shocks confirm demand weakness. Geopolitical developments and elevated energy prices pose risks through costs, activity and expectations. The MPC pledged to maintain tight policy until price stability is achieved and create conditions for inflation to reach the 5% medium-term target, signalling further tightening if the inflation outlook deteriorates significantly and persistently.
2026-09-10Central Bank of Türkiye
Central Bank of Türkiye Holds Policy Rate at 37%
The Central Bank of Türkiye held the one-week repo auction rate at 37%, citing disinflation and weak domestic demand while flagging elevated energy prices as an upside risk. It maintained overnight lending and borrowing rates at 40% and 35.5%, respectively, and pledged to keep policy tight until price stability is achieved.