As widely expected, the Central Bank of Türkiye has kept its policy interest rate, or one-week repo rate, steady at 37 percent on March 12.
The bank also maintained the overnight lending rate and the overnight borrowing rate at 40 percent and 35.5 percent, respectively.
"The underlying trend of inflation was essentially flat in February," it said, adding: "As uncertainty heightened amid geopolitical developments, global risk appetite deteriorated and energy prices increased."
The bank said decisions supporting tight monetary policy have been enacted alongside coordinated fiscal measures to contain the risks posed by these factors to the inflation outlook.
The statement underlined that the bank's tight monetary policy stance will strengthen the disinflation process through demand, exchange rate and expectation channels.
“In case of a significant and persistent deterioration in the inflation outlook, which can also be driven by the recent developments, monetary policy stance will be tightened,” the bank said.
The bank will determine the policy rate by taking into account realized and expected inflation and its underlying trend in a way to ensure the tightness required by the projected disinflation path in line with the interim targets, it added.
Starting from 45 percent, the bank has lowered the rate to 38 percent during the last year and decreased it to 37 percent in January, at the first monetary policy meeting of 2026.
The bank’s next rate setting meeting is scheduled for April 22.
