Central Bank of Turkey maintains key interest rate at 37 percent
The Central Bank of the Republic of Turkey (TCMB) announced its decision on Thursday, 23 July 2026, to maintain the key interest rate at 37 percent.
In addition, overnight borrowing and lending rates were also kept unchanged.
This decision, which forms part of the central bank' s monetary policy strategies, is of great significance for managing the country' s economic development.
The key interest rate is a central tool used by central banks to influence inflation and general economic activity.
By keeping the rate stable at such a high level, the TCMB is signalling its commitment to fighting rising prices.
A high interest rate makes borrowing money more expensive, which typically helps to dampen demand in the economy and, in turn, slow down price growth. For Turkish businesses, an unchanged high key interest rate means that the cost of borrowing money remains substantial.
This can influence investment decisions and expansion plans, as higher borrowing costs reduce the profitability of new projects.
Small and medium-sized enterprises, which are often more reliant on bank loans, may feel this pressure particularly acutely.
Households in Turkey will also feel the consequences of an unchanged interest rate policy.
The interest rate levels for consumer loans, mortgages, and other credit products are directly linked to the central bank' s key rate.
A persistently high key interest rate helps keep these borrowing costs elevated, which can reduce households' purchasing power and disposable income, potentially impacting private consumption and the general standard of living. The decision to keep the rate stable must be viewed in light of the general economic situation in Turkey, where challenges related to high inflation have been a persistent concern over time.
By maintaining a tight monetary policy, the central bank is attempting to stabilise the Turkish lira and restore confidence in the country' s economy.
The exchange rate of the lira is crucial for import prices and, consequently, for domestic inflation.
For tourists, travellers, and foreign residents in Turkey, a stable interest rate policy can have several effects.
While a stronger lira may make Turkey more expensive for those holding foreign currency, stabilising inflation can also contribute to more predictable prices for goods and services.
Economic predictability is important for both local businesses in the tourism industry and international entities with interests in the country.
Source: Haberglobal
