FX.co ★ Turkey Holds Base Interest Rate at 37%

The Central Bank of the Republic of Turkey kept its benchmark overnight lending rate unchanged at 37% for the fifth consecutive meeting in September 2026, in line with market expectations. The bank stated that, despite recent volatility in financial markets and a challenging global macroeconomic backdrop, leading indicators suggest that the underlying inflation trend has moderated since the June meeting. At the same time, surging energy prices, driven by a renewed escalation in the Iran–US conflict, have intensified inflationary risks, preventing any signal of looser financial conditions or a more favorable environment for the lira and other emerging market currencies. The bank also reaffirmed its commitment to supporting lira stability, which came under pressure in May after Turkish courts removed opposition leader Özel, a development that had earlier prompted adjustments to the monetary framework to push commercial banks toward higher funding costs.