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Turkey's Central Bank Leaves Rates Unchanged, as Expected

BY MT Newswires | ECONOMIC | 12:08 PM EDT

12:08 PM EDT, 03/12/2026 (MT Newswires) -- Turkey's central bank (CBT) Thursday said its Monetary Policy Committee (MPC) decided to keep the policy rate, the one-week repo auction rate, at 37.0%, as expected.

Before the policy statement, Societe Generale said expectations were for CBT to hold rates.

The MPC also maintained the Central Bank overnight lending rate and the overnight borrowing rate at 40.0% and 35.5%, respectively.

"As uncertainty heightened amid geopolitical developments, global risk appetite deteriorated and energy prices increased," wrote the CBT in its statement. "The tight monetary policy stance, which will be maintained until price stability is achieved, will strengthen the disinflation process through demand, exchange rate, and expectation channels."

The CBT seems to view the recent geopolitical risks as temporary and believes its current policy toolkit is sufficient to mitigate these risks for now, noted BBVA Research after Thursday's policy decision.

In BBVA Research's baseline, it anticipates rate cuts to resume in June, with gradual 100bps cuts at subsequent meetings, bringing the policy rate to 32% by year-end.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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