FX.co ★ Turkey Holds Overnight Lending Rate at 40% in March Policy Pause

Turkey kept its Overnight Lending Rate unchanged at 40.00% in March 2026, maintaining the same level set in January 2026, according to data updated on 12 March 2026. The decision signals a continuation of the central bank’s tight monetary stance, as policymakers appear to prioritize financial stability and inflation control over additional easing or further tightening moves for now.

By holding the rate steady for a second consecutive decision, authorities are effectively extending the period of elevated borrowing costs for Turkish banks and market participants. The unchanged 40.00% level underscores the central bank’s commitment to a restrictive policy environment, as it monitors incoming economic data and the impact of earlier rate adjustments on inflation dynamics and funding conditions.

Market observers will be watching subsequent policy meetings closely for signs of when Turkey might begin adjusting its Overnight Lending Rate away from this peak level. For the moment, however, March’s decision confirms that the high-rate regime remains firmly in place.