The Central Bank of the Republic of Türkiye held its one-week repo rate steady at 37.0% on Thursday, keeping its principal policy tool unchanged as the Monetary Policy Committee said it was closely monitoring the impact of geopolitical developments on the inflation outlook. The decision, taken at the MPC meeting on 11 June 2026, reinforced the central bank's message that the tight monetary stance would be maintained.

Alongside the headline decision, the committee left its overnight lending rate at 40.0% and the overnight borrowing rate at 35.5%. With one-week repo auctions suspended since 1 March, market funding continued to be provided through the overnight lending rate at 40%, an operational stance that keeps effective funding costs above the headline policy rate.

TIGHT STANCE HELD AGAINST ENERGY SHOCK

The MPC statement stressed that the tight monetary stance would be maintained until price stability is achieved. The committee said energy prices remained volatile and elevated amid geopolitical developments and the resulting uncertainties, and that the underlying trend of inflation, which rose in April partly because of higher energy prices, decreased slightly in May.

The committee noted that first-quarter data pointed to a slowdown in economic activity and that leading indicators suggested a continued weak course in domestic demand.

The statement repeated the committee's guidance that the monetary policy stance would be tightened in case of a significant and persistent deterioration in the inflation outlook, and said the committee remained highly attentive to upside risks to inflation.

OPERATIONAL FRAMEWORK UNCHANGED

The statement said liquidity conditions would continue to be closely monitored and liquidity management tools would continue to be used effectively, and that additional macroprudential measures would support monetary transmission in case of unanticipated developments in credit and deposit markets.

Economists had expected the bank to keep the policy rate unchanged. The rate has been held at 37% since January, when the committee cut it from 38%.

Annual consumer price inflation rose to 32.37% in April and 32.61% in May, according to the Turkish Statistical Institute.

The committee's next rate-setting meeting is scheduled for 23 July.