Turkey’s central bank, the CBRT, is resuming one-week repo auctions at its 37% policy rate after suspending them in March as the Iran war intensified inflationary and energy-price pressures. The move gives banks access to weekly funding below the 40% overnight rate without a formal policy-rate cut, easing financial conditions while inflation remains around 32%. The central bank had paused a monetary-easing cycle that began in late 2024 after the war started in late February. Governor Fatih Karahan said in August that restoring the auctions was under consideration when conditions became appropriate. The policy rate has remained at 37% since January 2026, following a one-percentage-point cut from 38%, while existing guidance points to possible 100-basis-point reductions in October and December 2026, potentially taking the rate to 35% by year-end. The repo resumption should reduce banks’ average funding costs and could support longer-dated Turkish government bonds, although renewed energy-price pressures or persistent inflation could delay further easing.