Türkiye surprises the markets and raises interest to 25%

Aug 24

Today, Thursday, the Monetary Policy Committee of the Central Bank of Turkey decided to raise the basic interest rate on the repurchase for a week from 17.5% to 25%.

The Committee also decided to continue the process of tightening monetary policy to stabilize deflation as soon as possible, stabilize inflation expectations, and control disturbances in pricing behavior.

The base interest rate will be set in such a way as to provide the necessary monetary and fiscal conditions to reduce the main trend of inflation and to achieve the inflation target of 5% over the medium term. Monetary policy tightening will also be strengthened gradually as needed and as needed until a clear improvement in the inflation picture is achieved.