Turkey’s Central Bank Shifts Funding Back to 37% Policy Rate

Turkey’s central bank has taken a significant step toward normalizing its funding conditions by reinstating weekly repo auctions at its 37% policy rate. This move suggests that the bank believes the economic disruptions caused by the Iran conflict have largely subsided. The shift indicates a return to more conventional monetary policies, which could stabilize the country’s financial markets and investor confidence. This decision underscores the bank's confidence in the economy’s resilience amid geopolitical tensions.