Turkish Central Bank raises key rate for the first time in 27 months – Kommersant
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The Central Bank (CB) of Turkey has decided to raise the key rate from 8.5% to 15% as part of the fight against the crisis in the country’s economy. The last time the regulator raised the key rate was 27 months ago, in March 2021.
“The Monetary Policy Committee decided to increase the weekly repo auction rate from 8.5% to 15%. The Board of Directors of the Central Bank decided to start the process of tightening monetary policy in order to achieve deflation as soon as possible, anchor inflationary expectations and control price volatility. statement following the results of the committee meeting, published on the website of the Turkish Central Bank.
Annual inflation in Turkey in May amounted to 39.6%. Last year inflation in the country was at the level of 86%. To combat it, the authorities of the country did not raise the Central Bank rate for a long time, but rather reduced it. The change in the key rate is the first decision of the new head of the regulator, Hafize Gaye Erkan, who took up this position in early June. She became the first woman in the history of Turkey to head the Central Bank.
More details – in the material “Kommersant” “She will command the parade”.
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