The Central Bank announced its interest rate decision

The Monetary Policy Committee (PPK) of the Central Bank of the Republic of Türkiye (TCMB) decided to keep the policy rate — the one-week repo auction rate — unchanged at 37% in its second interest rate meeting of the year. The Committee also maintained the overnight lending rate at 40% and the overnight borrowing rate at 35.5%. Market expectations were aligned with no change in the rate.

In its statement, the PPK noted that the underlying trend of inflation in February remained broadly flat, but geopolitical developments have increased uncertainties, global risk appetite has deteriorated, and energy prices have risen. The Central Bank announced that tight monetary policy and coordinated fiscal measures will be implemented to limit the risks these factors pose to the inflation outlook.

The Committee emphasized that the tight monetary policy stance will be maintained until price stability is achieved, and that the disinflation process will be supported through demand, exchange rate, and expectations channels. It was stated that the policy rate will be determined in a way that remains consistent with interim inflation targets and expectations, and that monetary policy may be tightened further if necessary.