Türkiye's central bank plans to increase its government bond portfolio next year, according to its 2026 Monetary Policy document, in a move it says is aimed at boosting operational flexibility.
The Central Bank of the Republic of Türkiye (CBRT) aims to increase the size of its government bond holdings to TL 450 billion ($10.48 billion) in 2026, up from TL 262.3 billion currently, the document, published at the weekend, said
The CBRT said nominal TL 67.7 billion of its existing so-called open market operations (OMO) portfolio is due to mature next year.
"In addition to the amount to be redeemed, the CBRT aims to support the OMO portfolio with outright purchases to support operational flexibility," the bank said.
"In 2026, the CBRT's OMO portfolio size has been set at nominal TRY 450 billion, reserving the option to make additional purchases."
This year, the bank added TL 800 million worth of lease certificates and TL 123.7 billion of government bonds to its portfolio through outright purchases via the traditional auction method, the document showed.
Among other key points in the document, the bank reaffirmed its commitment to tight monetary conditions aimed at restoring price stability.
It said monetary policy will continue to be conducted in a way to ensure the fulfillment of the monetary and financial conditions necessary to bring inflation down toward interim targets in the short term and the medium-term target of 5%.
Türkiye's annual inflation eased to 31.1% November, the lowest level in four years, and authorities have said they expect it to fall into the 20% range in early 2026.
The central bank's end-2025 interim inflation target stood at 24%, with a forecast range of 31%-33%.
The bank expects inflation to fall to its 16% interim target by the end of 2026, with a projected range of 13%-19%.
The bank's Monetary Policy Committee (MPC) will hold eight meetings in 2026, while the Inflation Report will continue to be published four times a year, it said.
Policymakers sharply raised interest rates in 2023 to tame inflation, which had peaked at about 75% in May 2024, before they began gradual cuts a year ago, bringing the policy rate to 38% earlier this month.
The CBRT reiterated that it will maintain the existing exchange rate regime, stressing that it has no target for the level or direction of the Turkish lira and will not conduct foreign exchange purchases or sales to influence exchange rates.
As long as market conditions allow, the CBRT said it will maintain its international reserve build-up strategy in 2026.
The policy framework prioritizing lira-denominated deposits and longer-term external borrowing will also remain in place next year, according to the document.
The CBRT said its primary objective remains achieving and maintaining price stability, adding that the one-week repo rate will continue to serve as its main policy instrument.
