Central Bank of Türkiye Holds One-Week Repo Auction Rate at 37%

The Central Bank of Türkiye’s Monetary Policy Committee kept the one-week repo auction rate at 37% on July 23, 2026, citing a slight easing in the underlying trend of inflation in June, a temporary rise signalled for July, renewed upward pressure in energy prices amid heightened geopolitical uncertainty, and recent data confirming continued weakness in domestic demand. The decision extended the hold seen since March after a 100 bp cut in January from 38% to 37%, with the policy rate down from 46% in July 2025. The Committee also left the overnight lending and borrowing rates unchanged at 40% and 35.5%, respectively, said tight monetary policy would be maintained until price stability is achieved, and reiterated that liquidity conditions would be closely monitored, with additional macroprudential measures available if unanticipated developments emerge in credit and deposit markets. The Committee said policy would continue to be set to deliver the projected disinflation path and reach the 5% inflation target in the medium term, while closely monitoring the effects of geopolitical developments on inflation through costs, activity and expectations; it said decisions would remain prudent and meeting-by-meeting, and that the stance would be tightened if the inflation outlook deteriorates significantly and persistently.