Monetary Policy Committee Decision No: 2026-01

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Monetary Policy Committee Decision
January 22, 2026 No: 2026-01
Participating Committee Members
Yaşar Fatih Karahan (Governor), Osman Cevdet Akçay, Elif Haykır Hobikoğlu, Hatice Karahan, Fatma Özkul. The Monetary Policy Committee (the Committee) has decided to reduce the policy rate (the one￾week repo auction rate) from 38 percent to 37 percent. The Committee has also lowered the Central Bank overnight lending rate from 41 percent to 40 percent and the overnight borrowing rate from 36.5 percent to 35.5 percent. The underlying trend of inflation declined in December. While leading indicators suggest that monthly consumer inflation has firmed in January, led by food prices, the rise in the underlying trend of inflation is limited. Indicators for the last quarter point to demand conditions that continue to support the disinflation process, albeit at a moderating pace. While showing signs of improvement, inflation expectations and pricing behavior continue to pose risks to the disinflation process. The tight monetary policy stance, which will be maintained until price stability is achieved, will strengthen the disinflation process through demand, exchange rate, and expectation channels. The Committee will determine the policy rate by taking into account realized and expected inflation and its underlying trend in a way to ensure the tightness required by the projected disinflation path in line with the interim targets. The step size is reviewed prudently on a meeting-by-meeting basis with a focus on the inflation outlook. Monetary policy stance will be tightened in case of a significant deviation in inflation outlook from the interim targets. In case of unanticipated developments in credit and deposit markets, monetary transmission mechanism will be supported via additional macroprudential measures. Liquidity conditions will continue to be closely monitored and liquidity management tools will continue to be used effectively. The Committee will make its policy decisions so as to create the monetary and financial conditions necessary to reach the 5 percent inflation target in the medium term. The Committee will make its decisions in a predictable, data-driven and transparent framework. The summary of the Monetary Policy Committee Meeting will be released within five working days.