Turkish Central Bank raises key rate for the first time since March 2021

The Central Bank of Turkey for the first time since March 2021 decided to move to raising rates. At a meeting on June 22, the regulator almost doubled it – from 8.5 to 15%. In early June, the Turkish Central Bank was headed by a woman, 44-year-old Hafize Gaye Erkan, for the first time in the history of the country.

The decision was made “in order to establish disinflation as soon as possible, anchor inflationary expectations and control deterioration in price behavior,” according to a statement on the regulator’s website. The Turkish Central Bank also refers to the global trend of continued inflation, noting that “for this reason, central banks around the world are taking action.”