ISTANBUL

The Central Bank of the Republic of Türkiye has kept its policy interest rate, or one-week repo rate, constant at 37% on Thursday.

The bank has also maintained the overnight lending rate and the overnight borrowing rate at 40% and 35.5%, respectively.

"The underlying trend of inflation was essentially flat in February," it said, adding: "As uncertainty heightened amid geopolitical developments, global risk appetite deteriorated and energy prices increased."

The bank said decisions supporting tight monetary policy have been enacted alongside coordinated fiscal measures to contain the risks posed by these factors to the inflation outlook.

The statement underlined that the bank's tight monetary policy stance will strengthen the disinflation process through demand, exchange rate, and expectation channels.

Starting from 45%, the bank has lowered the rate till 38% during the last year and decreased to 37% in January, at the first monetary policy meeting of 2026.