The Central Bank of Turkey raised the key rate to a record 50% – Kommersant

The Turkish Central Bank raised the key rate by 500 bps. p., from 45% to 50% per annum. The regulator has not reduced it since June 2023.

“The monthly inflation trend in February turned out to be higher than expected… Inflation in the service sector, inflation expectations, geopolitical risks and rising food prices support inflationary pressure,” the report says. message Turkish Central Bank.

The regulator clarified that tight monetary policy will be maintained until a significant and stable decline in the inflation trend is achieved. If forecasts worsen, measures will be strengthened.

In January, the Turkish Central Bank raised the key rate from 42.5% to 45% per annum – the highest level since 2003, when it reached 44%. At a meeting in February, the regulator kept the rate at the same level for the first time in eight months.

The Turkish Central Bank began a cycle of raising the key rate in June 2023. In February of this year, inflation in the country accelerated up to 67.1%. According to the forecast, by the end of the year it will be 36%, by the end of 2025 – 14%.

More details in the text “Kommersant” “The Turkish rate has almost reached its limit”.

Petr Buzlaev