The Central Bank of the Republic of Turkey left its benchmark overnight lending rate unchanged at 37% at its June 2026 meeting, marking a third consecutive hold in line with market expectations. Policymakers highlighted that the recent rise in energy prices driven by the war in the Middle East has intensified underlying inflationary pressures, reinforcing the shift in the risk balance away from growth and toward inflation that had already brought this year’s rate-cutting cycle to an end.
At the same time, the TCMB acknowledged that economic activity slowed in the first quarter. Nevertheless, the bank reiterated that interest rates will remain at restrictive levels until price stability is firmly secured, signaling resistance to any move toward easing in response to growth concerns. The statement also underscored the bank’s commitment to supporting the stability of the lira, which came under renewed pressure after Turkish courts removed opposition leader Özel from his position.
