Turkish Central Bank Holds Policy Rate at 37% Amid Ongoing Inflation Concerns

Turkish Central Bank policy rate 37% inflation outlook tight monetary stance macro‑prudential measures

On 14 June 2026 the Monetary Policy Committee of the Central Bank of the Republic of Turkey (TCMB) decided to keep the one‑week repo policy rate at 37%, unchanged from the previous meeting. The overnight lending rate remained at 40% and the overnight borrowing rate at 35.5%.

The committee’s statement said that the main inflation trend, which had risen in April because of higher energy prices, moderated in May, but energy‑price volatility and geopolitical uncertainty continue to pose risks. First‑quarter data show a slowdown in overall economic activity and a persistently weak internal‑demand outlook.

TCMB reiterated that a tight monetary stance will be maintained until price stability is achieved, and that additional macro‑prudential measures can be used if needed. Analysts such as ING highlighted the bank’s “wait‑and‑see” posture and noted that policy flexibility remains, while BBVA Research expects the funding‑rate to start normalising in September, with the 37% policy rate likely staying unchanged through the end of the year.