The Central Bank of Turkey raised the key rate from 25 to 30% – Kommersant
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The Central Bank of Turkey increased the key rate from 25% to 30% per annum, it is reported on website regulator This is the fourth rate increase since the end of June this year, when it was decided to change the leadership of the Turkish Central Bank.
“The Monetary Policy Committee of the Central Bank of Turkey increased the discount rate – the one-week auction repo rate – by 500 basis points, to 30%,” notes the Turkish Central Bank.
The Turkish Central Bank also promised to “resolutely use” all the tools at its disposal to stabilize the lira exchange rate and the level of inflation in the country. According to the Turkish publication TRT Haber, by the end of 2023 the key rate level in Turkey may reach 45%. The Central Bank’s inflation target is 5%. Currently, the inflation rate in Turkey is 38%.
“Foreign direct investment, improving external financing conditions, continued growth in foreign exchange reserves, the positive impact of tourism revenues on the current account balance and growing domestic and external demand for Turkish lira-denominated assets will make a significant contribution to improving price stability,” they believe. Central Bank.
In June, the Central Bank of Turkey was headed by Hafize Gaye Erkan – she became the first woman in this position (she studied at Princeton, worked at Goldman Sachs). After two weeks of her work in office, the rate in Turkey was increased from 15% to 17% per annum. Before her appointment, the rate in Turkey had not been increased for 27 months.
Read more in the Kommersant article. “The Turkish rate has rushed to new heights”.
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