Central Bank Kept Policy Rate Unchanged at September Meeting
The Monetary Policy Committee kept the policy rate constant at 37 percent in September, making no changes to the rate for eight months.
The Central Bank Monetary Policy Committee kept the policy rate constant at 37 percent at its September meeting. While no changes have been made to the rate for approximately 8 months following the January cut, the bank also kept overnight borrowing and lending interest rates unchanged.
September Meeting Decision
In the official statement following the Central Bank's Monetary Policy Committee meeting in September, it was stated that the policy rate was kept constant at 37 percent.
By leaving interest rates unchanged, the Central Bank fell short of the business world's expectations.
Constant Rate for Eight Months
The Central Bank had lowered the policy rate from 38 percent to 37 percent at its meeting in January 2026.
Following the cut in January, no new rate cuts or hikes have been made in the policy rate over the remaining period of approximately 8 months.
Other Interest Rates
Along with the policy rate, other funding rates were also maintained and left at the same levels during the September meeting.
The Central Bank kept the overnight lending interest rate constant at 40 percent and the overnight borrowing interest rate at 35.5 percent.
Main Trend of Inflation
In the announcement published by the Central Bank, it was noted that despite fluctuations on a monthly basis, there has been a decline in the main trend of recent inflation realizations.
The limited reflection of economic activity data and supply shocks onto domestic prices confirmed the weak course in domestic demand.
Energy Prices Risk Factors
It was stated that high energy prices resulting from geopolitical developments pose an upside risk on the inflation outlook.
The effects of geopolitical developments on the inflation outlook through cost channels, economic activity, and expectation channels are being closely monitored.
Tight Monetary Policy Stance
It was emphasized that the tight monetary policy stance, which will be maintained with determination until price stability is achieved, will strengthen the disinflation process.
It was stated that the Committee will determine the steps to be taken regarding the policy rate in a way that ensures the tightness required by disinflation in line with inflation expectations.