Turkey's central bank raises key rate for seventh consecutive time
Economy
Turkey's central bank raised its key rate to 42.2 per cent, the highest since April 2003. The rate stood at 8.5 per cent in May 2023 and was raised for the seventh consecutive time after Erdogan was re-elected president.
Turkey's central bank raised its key rate to 42.5 per cent from 40 per cent, the seventh consecutive increase since June 2023. The regulator's Monetary Policy Committee explained its decision by the fact that "the current level of domestic demand, the sustainability of service inflation and geopolitical risks support inflationary pressures".
According to Trading Economics, the last time the rate reached 44 per cent was in April 2003.
The new rate hike was the seventh consecutive since June 2023. The first increase in the cycle took place in June, when the regulator almost doubled the rate from 8.5 per cent to 15 per cent per annum. The Turkish Central Bank raised the interest rate to 17.5 per cent at its July meeting, to 25 per cent in August and 30 per cent in September. After the October meeting, the rate rose to 35%, and in November - to 40%.
According to Trading Economics, the last time the rate reached 44 per cent was in April 2003.
The new rate hike was the seventh consecutive since June 2023. The first increase in the cycle took place in June, when the regulator almost doubled the rate from 8.5 per cent to 15 per cent per annum. The Turkish Central Bank raised the interest rate to 17.5 per cent at its July meeting, to 25 per cent in August and 30 per cent in September. After the October meeting, the rate rose to 35%, and in November - to 40%.
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