The Monetary Policy Committee of the Central Bank of Türkiye kept the one-week repo rate unchanged at 37 percent and left the overnight corridor at 35.5–40 percent, arguing that the underlying inflation trend was broadly flat in February even as geopolitical tensions have lifted energy costs and dampened global risk appetite. After cutting the policy rate by 100 bp in January, the Committee judged existing tight monetary conditions appropriate for sustaining the disinflation path. It affirmed that the current stance will curb price pressures via demand, exchange-rate and expectations channels, and said liquidity will be managed closely while additional macro-prudential steps will be deployed if credit or deposit dynamics threaten transmission. The Committee is monitoring the impact of higher energy prices on costs and activity, highlighted coordinated fiscal measures already taken, and reiterated its commitment to maintain tight policy until inflation converges to the 5 percent medium-term target, pledging further rate hikes should the inflation outlook deteriorate materially.
Central Bank of Türkiye 2026-03-12
Central Bank of Türkiye keeps one-week repo rate unchanged at 37%
Central Bank of Türkiye’s Monetary Policy Committee held the one-week repo rate at 37% and the overnight corridor at 35.5–40%, judging current tight conditions sufficient to maintain a broadly flat inflation trend despite energy-led cost pressures. The Committee will manage liquidity closely, deploy macro-prudential tools if needed and stands ready to raise rates if the path to its 5% medium-term inflation target deteriorates.