Türkiye’s central bank maintained its key policy rate at 37% on Thursday, marking the fourth consecutive meeting without a change in borrowing costs.
The decision was broadly expected by market participants, who had priced in a hold as the monetary authority continues to monitor the economic fallout from the ongoing war in Iran.
The Turkish lira remained stable in trading following the announcement, reflecting the market’s anticipation of the outcome.
With inflationary pressures still a primary concern, the central bank’s stance underscores a preference for stability while assessing the broader macroeconomic impact of geopolitical tensions.
The high interest rate environment, established in previous tightening cycles, remains a critical tool in anchoring inflation expectations.
This decision aligns with a broader global trend of central banks pausing their monetary policy adjustments.