Turkish Central Bank keeps interest rate constant at 37%

Turkish Central Bank keeps interest rate constant at 37%

Amid geopolitical developments and resulting uncertainties, energy prices remain elevated and exhibit notable volatility, Turkish Central Bank says

The Central Bank of the Republic of Türkiye has kept its policy interest rate, or one-week repo rate, constant at 37% on Thursday.

The bank has also maintained the overnight lending rate and the overnight borrowing rate at 40% and 35.5%, respectively.

“The underlying trend of inflation declined in March. Leading indicators suggest a slight increase in the underlying trend in April,” it said, adding: “Amid geopolitical developments and the resulting uncertainties, energy prices remain elevated and exhibit notable volatility.”

The bank said indicators point to a slowdown in economic activity, and potential second-round effects of recent developments on the inflation outlook will be of importance.

“The tight monetary policy stance, which will be maintained until price stability is achieved, will strengthen the disinflation process through demand, exchange rate, and expectation channels,” it added.

Starting from 45%, the bank has lowered the rate till 38% during the last year and decreased to 37% in January, at the first monetary policy meeting of 2026.