Turkey Central Bank Keeps Policy Rate at 37 Percent
Summary
The Central Bank of the Republic of Turkey (CBRT) maintained its policy rate at 37 percent on March 12, 2026. The Monetary Policy Committee also kept the overnight lending rate at 40 percent and the overnight borrowing rate at 35.5 percent. The decision reflects ongoing efforts to contain inflation risks amid geopolitical developments and deteriorating global risk appetite.
What changed
The CBRT Monetary Policy Committee decided to keep the policy rate unchanged at 37 percent, maintaining the tight monetary stance. The Committee noted that the underlying inflation trend was essentially flat in February, while geopolitical developments have heightened uncertainty and deteriorated global risk appetite. The Committee maintained its commitment to the 5 percent medium-term inflation target.
Turkish financial institutions should monitor the CBRT's data-driven approach to policy rate decisions. The Committee indicated it will tighten monetary stance further in case of significant and persistent deterioration in the inflation outlook. Institutions should also watch for potential additional macroprudential measures if unanticipated developments arise in credit and deposit markets.
What to do next
- Monitor CBRT monetary policy decisions for rate changes
- Track inflation outlook and geopolitical developments affecting the inflation trajectory
Archived snapshot
Apr 16, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Share Print No: 2026-12
March 12, 2026
Press Release on Interest Rates
Participating Committee Members
Yaşar Fatih Karahan (Governor), Osman Cevdet Akçay, Elif Haykır Hobikoğlu, Gazi İshak Kara, Hatice Karahan, Fatma Özkul.
The Monetary Policy Committee (the Committee) has decided to keep the policy rate (the one-week repo auction rate) at 37 percent. The Committee has also maintained the Central Bank overnight lending rate and the overnight borrowing rate at 40 percent and 35.5 percent, respectively.
The underlying trend of inflation was essentially flat in February. As uncertainty heightened amid geopolitical developments, global risk appetite deteriorated and energy prices increased. To contain the risks posed by these factors to the inflation outlook, decisions supporting tight monetary policy have been enacted alongside coordinated fiscal measures. The effects of geopolitical developments on the inflation outlook through the cost channel and economic activity are being closely monitored.
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. The Committee will determine the policy rate by taking into account realized and expected inflation and its underlying trend in a way to ensure the tightness required by the projected disinflation path in line with the interim targets. Monetary policy decisions are made prudently on a meeting-by-meeting basis with a focus on the inflation outlook. In case of a significant and persistent deterioration in the inflation outlook, which can also be driven by the recent developments, monetary policy stance will be tightened.
In case of unanticipated developments in credit and deposit markets, monetary transmission mechanism will be supported via additional macroprudential measures. Liquidity conditions will continue to be closely monitored and liquidity management tools will continue to be used effectively.
The Committee will make its policy decisions so as to create the monetary and financial conditions necessary to reach the 5 percent inflation target in the medium term. The Committee will make its decisions in a predictable, data-driven and transparent framework.
The summary of the Monetary Policy Committee Meeting will be released within five working days.
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