Turkey’s central bank delivered a large interest rate hike Thursday, raising its key rate by 6.5% points to 15%.
The increase, which is a significant jump from the current 8.5%, is the first since March 2021. Turkey’s central bank cut its key interest rate from around 19% in 2021 to 8.5% earlier this year.
The central bank’s policy committee said the tightening “will be further strengthened as much as needed in a timely and gradual manner until a significant improvement in the inflation outlook is achieved”.
It raised rates “in order to establish the disinflation course as soon as possible, to anchor inflation expectations, and to control the deterioration in pricing behavior.”
