October 22, 2026
No: 2026-45

Monetary Policy Committee Decision

Participating Committee Members

Yaşar Fatih Karahan (Governor), Hatice Karahan, Fatma Özkul, Gazi İshak Kara, Yusuf Emre Akgündüz, Elif Haykır Hobikoğlu.

The Monetary Policy Committee (the Committee) has decided to reduce the policy rate (the oneweek repo auction rate) from 37 percent to 36 percent. The Committee has also lowered the Central Bank overnight lending rate from 40 percent to 39 percent and the overnight borrowing rate from 35.5 percent to 34.5 percent.

Despite monthly fluctuations, recent inflation figures and leading indicators confirm the deceleration in the underlying trend of inflation. Data on economic activity as well as the limited pass-through of supply shocks to domestic prices indicate that domestic demand remains weak. On the other hand, elevated energy prices due to ongoing geopolitical tensions continue to pose an upside risk to the inflation outlook. The impact of geopolitical developments on the inflation outlook through the cost channel, economic activity and expectations is closely monitored.

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 size and timing of policy steps will be decided prudently on a meeting-by-meeting basis with a focus on the inflation outlook. In case of a significant and persistent deterioration in the inflation outlook, monetary policy stance will be tightened. The Committee reiterated that it remains highly attentive to upside risks on inflation.

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.