Türkiye's central bank kept its one-week repo rate at 37 per cent and the upper and lower bounds of its rate corridor at 40 per cent and 35.5 per cent. Although the committee saw signs that underlying inflation was slowing, it called elevated energy prices amid geopolitical developments an upside risk. The decision repeated that tight policy would remain until price stability was achieved.
The Monetary Policy Committee of the Central Bank of the Republic of Türkiye kept the one-week repo auction rate at 37 per cent. The overnight lending rate remained at 40 per cent and the overnight borrowing rate at 35.5 per cent. The central bank statement and a Dow Jones report published by MarketScreener both said all three rates were unchanged, leaving the full interest-rate corridor at its previous settings.[1], [2]
The committee said recent data and leading indicators pointed to a slowing underlying inflation trend despite monthly fluctuations. It nevertheless identified elevated energy prices amid geopolitical developments as an upside risk to the outlook. Dow Jones also described the decision as coming under pressure from energy prices and the war in Iran. The central bank said the pass-through of supply shocks to domestic prices had so far remained limited.[1], [2]
The central bank said activity data confirmed weakness in domestic demand. The committee repeated that it would monitor the impact of geopolitical developments on prices through costs, economic activity and expectations, and would maintain a tight monetary stance until price stability was achieved. Its statement also said policy would be tightened if the inflation outlook deteriorated significantly and persistently. The medium-term inflation target remained at 5 per cent.[1]
