The Central Bank of the Turkish Republic announced its decision on the key interest rate

The Monetary Policy Committee (hereinafter – the Committee) decided to keep the key rate unchanged at 46%. The Committee also kept the Central Bank’s one‑day lending rate unchanged at 49% and the one‑day borrowing rate unchanged at 44.5%.

The Central Bank also stated that “the core inflation trend decreased in May. Leading indicators suggest the core trend continued to decline in June. Q2 data show that domestic demand slowed. The potential impact of geopolitical events and increased protectionism in global trade on the disinflation process is being closely monitored. Inflation expectations and price behavior remain risk factors for the disinflation process.

The resolute monetary policy stance strengthens disinflation by balancing domestic demand, the real appreciation of the Turkish lira, and improving inflation expectations. Enhanced coordination of fiscal policy will also make a significant contribution to this process. The tight monetary policy stance will be maintained until sustained disinflation and price stability are achieved. In this context, the interest rate will be set to ensure the rigidity required by the expected disinflation process, taking into account inflation realizations, underlying trends, and expectations. The Council will determine rate steps to be taken with a cautious and meeting‑based approach oriented to the inflation forecast. In the event of a significant and persistent deterioration in inflation, all monetary policy tools will be effectively used.”

In the event of unforeseen developments in credit and deposit markets, the monetary transmission mechanism will be supported by additional macroprudential measures. Liquidity conditions will continue to be closely monitored, and liquidity management instruments will continue to be effectively used.

The Council will determine policy decisions to reduce core inflation trends and ensure monetary‑credit and financial conditions that will bring inflation to the 5% target in the medium term, taking into account the lagged effects of monetary tightening. In this context, all monetary policy instruments will be used decisively. The Council will make its decisions within predictable, data‑driven and transparent frameworks.