Turkey’s central bank raises key rate again less than market expectations

The Central Bank of Turkey at a meeting on Thursday decided to raise the key rate by 250 bp. p. – up to 17.5%. This is the second rate hike since the end of June. The move did not meet market expectations. Analysts predicted that the rate would reach 20%.

In June, the Turkish Central Bank raised the rate for the first time since March 2021. It almost doubled from 8.5% to 15%. Nevertheless, even then, many experts warned about the insufficiency of these measures. The regulator, according to official statements, intends to tighten monetary policy until a noticeable cooling of inflation is achieved.