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CBRT holds one-week repo rate at 37% as funding stays near 40%

Commerzbank said the repo window remaining closed keeps effective funding close to the 40% overnight facility, which it views as marginally lira supportive.

Reported · Written up by our desk · Central Banks

The Central Bank of the Republic of Türkiye kept its one-week repo rate at 37.0% and left the interest rate corridor unchanged at 35.5% to 40.0%, according to commentary cited by FXStreet from Commerzbank analyst Tatha Ghose.

Ghose said the weekly repo window is still closed, so effective funding remains near 40%, which he views as supportive for the Turkish lira at the margin.

The note pointed to renewed oil price gains, rising inflation expectations, and fragile FX reserves as reasons for the CBRT’s cautious stance.

FXStreet also reported that the CBRT did not signal when funding could be normalized back down from near 40% to 37%, and said investors may interpret any hint about gradually bringing back the repo as tantamount to a rate cut that could pressure the exchange rate.

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