Türkiye hikes policy interest rate 500 points, matching forecasts

On Thursday, the Central Bank of Turkey implemented an anticipated policy rate increase of 500 basis points, bringing the rate to 30%, aligning with market expectations. According to a recent survey conducted by Anadolu, economists had forecasted this 500-basis-point interest rate hike, with estimates ranging from a minimum of 250 basis points to a maximum of 600 basis points.

Anadolu Agency ECONOMY

Published September 21,2023

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TÜRKIYE HIKES POLICY INTEREST RATE 500 POINTS, MATCHING FORECASTS

The Central Bank of Türkiye on Thursday raised its policy rate by 500 basis points to 30%, meeting market forecasts.

Economists polled by Anadolu survey last week said they expected a 500-basis-point interest rate hike, with the lowest estimate at 250 basis points and the highest at 600.

At its August meeting, the bank hiked its policy interest rate 750 basis points to 25%. It pledged to continue the monetary tightening process to help bring down inflation.

According to the latest data from TurkStat, Türkiye's annual inflation rose to 58.94% in August, up from 47.8% in July.

After the appointment of Governor Hafize Gaye Erkan, the bank ended its 27-month monetary easing cycle and on Thursday raised rates for the fourth consecutive meeting.