Türkiye keeps key rate at 37 pct amid sticky inflation, geopolitical risks

ANKARA, Sept. 10 (Xinhua) -- Türkiye's central bank kept its benchmark interest rate unchanged at 37 percent on Thursday, as slowing but still-elevated inflation and regional instability continued to weigh on the country's economic outlook.

A man walks past Türkiye's central bank in Ankara, Türkiye, on May 14, 2026. (Photo: Xinhua)

The decision, which was in line with expectations, extends the bank's cautious stance despite annual inflation easing to 31.51 percent in August, marking a slight but sustained decline from previous months.

"Elevated energy prices amid geopolitical developments pose an upward risk to the inflation outlook," the bank said in a statement following its rate-setting meeting.

"The impact of geopolitical developments on the inflation outlook through the cost channel, economic activity and expectations is closely monitored," it added.

The central bank last cut its policy rate this year in January, lowering it by 100 basis points to 37 percent.