FX.co ★ Turkey Holds Rate at 37% as Expected

The Central Bank of the Republic of Turkey left its benchmark overnight lending rate unchanged at 37% at its July 2026 meeting, marking a fourth consecutive hold and in line with market expectations. The Bank reported a slight easing in the underlying inflation trend in June, but noted that leading indicators point to a renewed pickup in July, keeping inflation risks elevated. This rebound in price dynamics mirrors developments in several Asian economies, as global energy prices have again approached previous peaks amid the intensification of the war in the Middle East.

At the same time, data monitored by the CBRT indicate a slowdown in domestic demand. The Bank reiterated that its policy stance will remain restrictive until price stability is firmly secured, signaling no inclination to loosen policy in response to growth concerns. It also emphasized its commitment to safeguarding the stability of the lira, which came under pressure in May following the removal of opposition leader Özel by Turkish courts.