CBRT holds policy rate steady at 37%

The CBRT Monetary Policy Committee left the policy rate at 37% on 10 September. The rate is unchanged since January's cut; what it means for mortgage borrowers.

At its meeting on 10 September 2026, the Monetary Policy Committee of the Central Bank of the Republic of Türkiye (CBRT) kept the policy rate, the one-week repo auction rate, steady at 37%. The Committee left the overnight lending rate at 40% and the overnight borrowing rate at 35.5%.

The rate has stayed at the same level since January

The CBRT cut the policy rate from 38% to 37% on 22 January 2026. According to the press releases published by the Committee, the rate was held at 37% at the March, April, June, July and September meetings. The policy rate has thus stayed at the same level for most of the year.

What did the Committee say in its rationale?

The main points of the September announcement were:

Despite monthly fluctuations, leading indicators point to a decline in the underlying trend of inflation.
Economic activity data confirm that domestic demand is weak.
High energy prices linked to geopolitical developments pose an upside risk to inflation.
The tight monetary policy stance will be maintained until price stability is achieved; interest rate steps will be set meeting by meeting and with a cautious approach, according to the realized and expected course of inflation.

The Committee once again underlined its medium-term inflation target of 5%.

What does it mean for those taking out a mortgage?

The policy rate is one of the key rates that determine banks' funding costs. With the rate unchanged, expectations of a noticeable cut in mortgage rates in the short term remain limited; the rates banks offer continue to vary by campaign, maturity and customer profile. It is important for buyers planning a loan to get written offers from several banks and compare the total repayment amount.

For sellers, it should also be remembered that a buyer using a loan will go through the bank's appraisal process; having the listing price in line with the appraised value directly affects how long the sale takes.

What was the rationale during the year?

The Committee's 2026 announcements also show the changing picture behind why the rate was held. The March announcement stated that the underlying trend of inflation was running close to flat in February, that uncertainties had increased with geopolitical developments and that energy prices had risen. The April announcement said that the underlying trend had declined in March, but that leading data pointed to a slight rise in April. The June announcement noted that the underlying trend, which had risen in April partly because of energy prices, had declined slightly in May.

The CBRT made no commitment about the Committee's next step; it stated that decisions would be shaped by the data.

A practical checklist before applying for a loan

Calculate the ratio of the monthly instalment to household income and make sure it is affordable even if rates do not change.
Do not sign a binding sales contract before learning the bank's appraisal value; the loan amount is generally set according to the appraised value.
Add extra items such as file fees, insurance and appraisal fees to the total cost.
As the term gets longer, the monthly instalment falls but total repayment rises; compare two different terms side by side.

Committee decisions and their rationales are published as press releases on the CBRT's website; a detailed summary of the meeting is released about a week after the decision.