The Turkish Central Bank kept its one-week repo policy rate unchanged at 37% on June 11, 2026, marking the third consecutive meeting at this level [1, 2]. The bank last cut its policy rate in January 2026, lowering it from 38% to 37% [2].
Alongside the policy rate, the overnight lending and borrowing rates remained steady at 40% and 35.5% respectively [2]. The Central Bank cited a slowdown in economic activity, weak domestic demand, and volatile elevated energy prices influenced by geopolitical developments as factors affecting the inflation outlook [2]. Türkiye’s annual inflation rate rose to 32.61% in May 2026, underscoring persistent price pressures [2].
The Monetary Policy Committee said it "will maintain a tight monetary policy stance until price stability is achieved, strengthening the disinflation process through demand, exchange rate and expectation channels," and added that "in case of a significant and persistent deterioration in the inflation outlook, monetary policy stance will be tightened" [2]. It also noted that "the impact of geopolitical developments on the inflation outlook through the cost channel, economic activity and expectations is closely monitored" [2].
Most economists surveyed by Bloomberg expected the Central Bank to hold rates steady, with 18 out of 21 predicting the 37% level would remain unchanged while a minority called for a hike to 40% [1]. The bank’s decision aligns with the majority-market expectation despite calls for tightening.
The next policy meeting will be closely watched for any signals of changes to the current stance amid ongoing inflationary pressures and global uncertainties [2].
