22.04.2026 14:45
The Central Bank of the Republic of Turkey (CBRT) Monetary Policy Committee (the Committee) kept the policy interest rate unchanged at 37 percent. In the CBRT's decision text, it was stated, 'In case of a significant and persistent deterioration in the inflation outlook due to recent developments, the monetary policy stance will be tightened.'
The Central Bank of the Republic of Turkey (CBRT) announced its interest rate decision. The Monetary Policy Committee (the Committee) decided to keep the policy rate, the one-week repo auction interest rate, unchanged at 37 percent. The Committee also kept the overnight lending rate at 40 percent and the overnight borrowing rate at 35.5 percent.
ATTENTION DRAWN TO GEOPOLITICAL DEVELOPMENTS
The decision text included the following statements:
"The underlying trend of inflation declined in March. Leading indicators point to a slight increase in the underlying trend in April. Amid geopolitical developments and resulting uncertainties, energy prices are observed to be high and exhibit significant volatility. The effects of these developments and domestic energy prices on the inflation outlook through the cost channel and economic activity are being closely monitored. While indicators point to a slowdown in economic activity, the potential secondary effects of recent developments on the inflation outlook will be significant.
"POLICY WILL BE TIGHTENED IF INFLATION DETERIORATES"
The tight monetary policy stance, which will be maintained until price stability is achieved, will strengthen the disinflation process through the demand, exchange rate, and expectations channels. The Committee will determine the steps to be taken regarding the policy rate by considering inflation outcomes, its underlying trend, and expectations, in a manner consistent with interim targets to provide the tightness required by disinflation. Monetary policy decisions are taken with an inflation outlook-focused, meeting-by-meeting, and cautious approach. In case of a significant and persistent deterioration in the inflation outlook, influenced also by recent developments, the monetary policy stance will be tightened. The Committee emphasized its cautious stance against upside risks to inflation.
In case of developments in credit and deposit markets that deviate from expectations, the monetary transmission mechanism will be supported with additional macroprudential steps. Liquidity conditions will continue to be closely monitored and liquidity management tools will be used effectively.
The Committee will set its policy decisions to ensure monetary and financial conditions that will bring inflation to the 5 percent target in the medium term. The Committee will take its decisions within a predictable, data-driven, and transparent framework."
WHAT WAS THE DECISION IN THE LAST MEETING?
In the second Monetary Policy Committee meeting of the year held on March 12, 2026, no change was made to interest rates. The Committee had decided to keep the policy rate unchanged at 37 percent. In the January meeting, the interest rate had been reduced by 100 basis points from 38 percent to 37 percent.