CBRT interest rates: Policy rate held at 37% - Tight stance message

The Central Bank of the Republic of Türkiye (CBRT) announced on April 22, 2026 that the one-week repo auction rate remains at 37 percent. The Committee also kept the overnight lending and borrowing rates at 40 percent and 35.5 percent, respectively, emphasizing that the monetary stance will be maintained until price stability is achieved. The press release highlighted ongoing geopolitical risks and elevated energy prices as important considerations.

According to the Committee, the underlying trend of inflation declined in March, while leading indicators point to a slight uptick in April. The central bank noted that elevated and volatile energy prices, together with their effects on costs and economic activity, are being closely monitored. The CBRT reiterated it will set the policy rate taking into account realized and expected inflation and its underlying trend to ensure the tightness necessary for the projected disinflation path.

The statement underlined that while indicators point to a slowdown in economic activity, potential second-round effects on inflation stemming from recent developments remain a concern. The CBRT signaled readiness to tighten policy if there is a significant and persistent deterioration in the inflation outlook. It also noted that if unexpected developments occur in credit and deposit markets, additional macroprudential measures could be used to support monetary transmission and liquidity management tools will continue to be employed effectively.

The Committee reaffirmed its medium-term objective of achieving a 5 percent inflation target and stressed that decisions will be made in a predictable, data-driven and transparent framework. The summary of the Monetary Policy Committee meeting will be released within five working days, which market participants expect to contain further details on the rationale behind the decision and the outlook for future policy steps.

Market participants and analysts are likely to focus on incoming inflation data, core inflation measures, energy price dynamics and liquidity conditions in the coming weeks. The CBRT’s meeting-by-meeting, data-dependent approach means that future adjustments will hinge on the evolving inflation trajectory and any material changes in financial conditions, with upside risks to inflation remaining under close scrutiny.