Turkish Central Bank Holds Rates at 37.0% Amid Persistent Inflation Risks

Key Facts

1The Turkish Central Bank maintained its benchmark one-week repo rate at 37.0%.

2The central bank's last interest rate adjustment was a cut in January.

In a move reflecting the continuation of tight monetary policy to combat price pressures, the Central Bank of the Republic of Turkey (CBRT) decided to keep its benchmark one-week repo rate steady at 37.0%. This decision, made during the September meeting, underscores the bank's cautious stance in light of persistent inflation risks. The hold maintains the status quo established since the central bank's last interest rate adjustment, which was a cut implemented in January.

This decision comes as global markets monitor the actions of major central banks amid varying economic signals. According to market data, the US recently saw heightened service sector pressures with the ISM Non-Manufacturing Prices index reaching 72.6 in early September, highlighting the importance of firm monetary stances in emerging markets like Turkey to ensure currency and price stability.

Looking ahead, markets are searching for signals regarding Turkish monetary policy direction in the coming months, particularly as authoritative price data for related instruments remains unavailable as of close September 10, 2026. Investors will focus on upcoming economic data to assess the effectiveness of holding rates at 37.0% in curbing inflation, while monitoring regional geopolitical and economic developments.