11.06.2026 14:10
The Central Bank of the Republic of Turkey's Monetary Policy Committee kept the one-week repo auction interest rate, which is the policy rate, unchanged at 37 percent.
The Central Bank of the Republic of Turkey (CBRT) Monetary Policy Committee (MPC) announced its June interest rate decision. The committee, chaired by CBRT Governor Yaşar Fatih Karahan, kept the policy rate, the one-week repo auction interest rate, unchanged at 37 percent.
The committee also left the Central Bank's overnight lending rate at 40 percent and the overnight borrowing rate at 35.5 percent.
EMPHASIS ON INFLATION DECLINE
In the decision statement, it was noted that the main trend of inflation, which rose in the first months of the year and increased in April due to energy prices, declined slightly in May.
However, it was stated that volatility and high levels in energy prices persist due to geopolitical developments.
WEAKNESS IN DOMESTIC DEMAND CONTINUES
The Central Bank noted that data for the first quarter indicate a continued slowdown in economic activity. It was stated that leading indicators also show a continued weak outlook in domestic demand.
The committee emphasized that it closely monitors the effects of geopolitical developments on costs, economic activity, and expectations.
"TIGHT MONETARY POLICY WILL CONTINUE"
The MPC statement conveyed the message that the tight monetary policy stance will be maintained until price stability is achieved. The committee stated that steps regarding the policy rate will be determined by taking into account inflation realizations, the main trend of inflation, and expectations.
MESSAGE OF POSSIBLE RATE HIKE AGAIN IF NECESSARY
One of the notable sections in the decision statement was the assessments regarding inflation risks. The Central Bank emphasized that if a significant and permanent deterioration occurs in the inflation outlook, the monetary policy stance will be tightened, maintaining a cautious stance against upside risks.
EMPHASIS ON DATA-DRIVEN AND TRANSPARENT POLICY
The committee stated that macroprudential measures could be activated in case of unexpected developments in credit and deposit markets.
While it was noted that liquidity conditions will continue to be closely monitored, it was stated that monetary policy decisions will be taken within a data-driven, predictable, and transparent framework to bring inflation to the 5 percent target in the medium term.