Turkey’s Central Bank Raises Interest Rates in Monetary Policy Shift

The Central Bank of the Republic of Türkiye (CBRT) implemented a significant interest rate increase to 15 percent on Thursday, marking a shift in monetary policy under the re-elected President Recep Tayyip Erdogan.

In a statement, the CBRT expressed its intention to continue gradually tightening monetary policy in order to combat inflation effectively.

CBRT Governor Hafize Gaye Erkan stated, “The Committee decided to initiate the process of monetary tightening to swiftly establish a disinflationary path, anchor inflation expectations, and control the deterioration in pricing behavior.”

This interest rate hike is Turkey’s first since March 2021, coinciding with a decrease in inflation to 40 percent in May.

The decision reflects President Erdogan’s monetary policy U-turn and the government’s commitment to addressing inflationary pressures through tighter monetary measures.



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