The Central Bank of the Republic of Türkiye has held its policy rate at 37.0% for a fifth consecutive meeting, extending a pause in its interest rate cycle. The decision, announced on 10 September 2026, keeps the interest rate corridor unchanged at 35.5% to 40.0%, according to press materials referenced on the bank's website.
The CBRT said recent inflation data suggested that the underlying trend was decelerating, providing the analytical basis for keeping the policy rate on hold while its earlier moves continue to work through the economy. The steady stance follows a period in which the bank had adjusted its operational framework to reinforce policy transmission.
LIQUIDITY MANAGEMENT
The bank resumed one-week repo funding as of 23 August, using the instrument to sterilise excess Turkish lira liquidity in the system. The move brought a technical dimension to the current monetary policy stance, complementing the headline decision to leave the policy rate unchanged.
According to the CBRT's communication, the resumption of one-week repo operations contributed to a 300 basis point decline in the cost of funding, translating into a 440 basis point drop on a compounded basis. That effective loosening on the funding side sits alongside a nominally unchanged headline policy rate, illustrating the multiple levers the bank is deploying.
The interest rate corridor at 35.5% to 40.0% defines the outer bounds within which the CBRT operates its short-term liquidity management. Keeping the corridor unchanged reinforces the steadiness of the policy stance while giving the bank flexibility to fine-tune market rates within the band.
One-week repo funding is the CBRT's primary open market operations tool, and its resumption from 23 August restored a mechanism that had been dormant while the bank relied on alternative liquidity channels. Sterilising excess lira liquidity through this instrument helps align interbank rates with the policy stance and reinforces the transmission of the 37% policy rate.
INFLATION AND OUTLOOK
The CBRT's assessment that the underlying inflation trend is decelerating supports its case for a prolonged hold at the current policy rate. Turkey's disinflation programme has been the anchor of monetary policy since the shift back to orthodox settings, and the bank has emphasised its data-dependent approach to any future adjustments.
By holding for a fifth consecutive meeting, the Monetary Policy Committee is allowing the effects of prior tightening to work through the pricing chain, while managing the liquidity dimension through repo operations. The compounded 440 basis point drop in the cost of funding gives the banking sector marginally more room to intermediate credit at prevailing rates.
The bank's next Monetary Policy Committee decision will be taken in line with its published calendar and will incorporate incoming data on inflation, exchange rate developments and credit dynamics. The CBRT reiterated its commitment to maintaining a tight stance for as long as needed to secure the disinflation path.
With the policy rate held at 37% for a fifth consecutive meeting and the interest corridor unchanged at 35.5% to 40.0%, the CBRT is providing an extended plateau in headline rates. That extended hold, coupled with the reactivation of one-week repo funding from 23 August, gives banks and corporates a stable framework within which to plan lira funding and hedging activity into the final quarter of the year.