The Central Bank of the Republic of Türkiye (TCMB) kept its policy interest rate at 37% during its meeting on March 12, 2026 [1].

This decision is critical as the bank attempts to maintain monetary stability and manage inflation within a volatile economic environment. By aligning the rate with market expectations, the TCMB aims to provide predictability for investors and domestic financial institutions.

The Monetary Policy Committee decided to hold the one-week repo auction interest rate steady at 37% [1], [2], [3]. This move reflects a strategy to keep the current monetary policy framework stable while monitoring economic indicators.

In addition to the policy rate, the bank established the overnight lending rate at 40% [4]. This spread between the policy rate and the lending rate is a standard mechanism used by the central bank to manage liquidity in the interbank market.

The decision was reached at the bank's headquarters in Ankara [1]. The committee said that the decision to maintain the rate was made to ensure the stability of the monetary policy in accordance with current market forecasts [1], [2].

Market analysts had largely anticipated that the bank would not move the rate in this cycle. The decision to hold suggests that the TCMB is waiting for further data on inflation and currency stability before considering a change in direction.

“The Central Bank of the Republic of Türkiye (TCMB) kept its policy interest rate at 37%”

The decision to hold the policy rate at 37% signals that the TCMB is prioritizing stability over aggressive intervention. By maintaining a gap between the policy rate and the overnight lending rate, the bank is attempting to control short-term liquidity and curb inflationary pressures without shocking the market with a sudden rate hike.