The Central Bank of Turkey announced on Sunday it will restart one-week repurchase auctions at a benchmark rate of 37%, ending a five-month suspension implemented in March. The move follows a pause in the monetary easing cycle that began in late 2024, triggered by the escalation of conflict in late February.
The bank had previously tightened liquidity conditions to cap the overnight lira rate at 40%, a measure aimed at curbing price pressures that have since stabilized around 32%. Governor Fatih Karahan indicated in early August that the resumption of auctions was under consideration, pending appropriate market conditions.
The one-week repo auctions will provide central bank resources at the newly set 37% rate, signaling a shift in the bank’s liquidity management strategy as it balances inflation control with financial stability.
