The Central Bank of the Republic of Türkiye kept the one-week repo auction rate at 37%, while maintaining the overnight lending and borrowing rates at 40% and 35.5%, respectively. The Monetary Policy Committee judged that a tight stance remains necessary to support disinflation through demand, exchange rate and expectations channels. Annual consumer inflation eased to 31.51% in August, and indicators suggest the underlying trend continues to decelerate despite a slight monthly increase. Weakening domestic demand is limiting inflation pressures, but elevated energy prices, geopolitical disruptions and rising inflation expectations pose upside risks. Services inflation also remains persistent at about 40%, compared with goods inflation of around 26%. The committee will set rates meeting by meeting based on realized and expected inflation and its underlying trend. It will tighten policy if the inflation outlook deteriorates significantly and persistently, while using macroprudential and liquidity tools to support monetary transmission where needed.
2026-09-17Central Bank of Türkiye
Central Bank of the Republic of Türkiye holds policy rate at 37% as energy risks cloud disinflation
The Central Bank of the Republic of Türkiye held its policy rate at 37% and kept the overnight lending and borrowing rates at 40% and 35.5%. Weakening demand is supporting disinflation, but elevated energy prices, geopolitical disruptions and inflation expectations remain upside risks. The bank will tighten policy if the inflation outlook deteriorates significantly and persistently.