The Central Bank of Turkey raised the key rate for the eighth time – to 45% – Kommersant
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The Central Bank of Turkey raised the key rate by 2.5 percentage points, to 45%, follows from press release regulator The rate on seven-day repo operations was increased from 42.5% to 45%.
This is the eighth rate increase since the end of June 2023. On December 22, 2023, the Turkish regulator increased the key rate from 40% to 42.5%.
“The current level of the discount rate will be maintained until there is a significant decrease in the main trend of monthly inflation and inflation expectations reach the forecast range,” the regulator said in a statement.
Inflation in Turkey in November amounted to 62%. In the third quarter of 2023, it exceeded forecasts and reached 70%. In December 2023, the inflation rate dropped to 64.77%.
On June 22, the Turkish Central Bank raised the key rate for the first time since February 2021 – from 8.5% to 15.0% per annum. This was the first decision of Hafize Gaye Ercan, who was appointed head of the Turkish Central Bank on June 9.
About tightening monetary policy – in the Kommersant publication “The Turkish rate has almost reached its limit”.
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