The Central Bank went for another interest rate hike that did not meet market expectations

CBRT

The Central Bank of the Republic of Turkey (TCMB) implemented another interest rate hike that did not meet market expectations. TCMB raised its policy rate by 250 basis points to 17.50%, emphasizing in the decision statement that the tightening process will continue.

The Central Bank of the Republic of Turkey (TCMB) raised its policy rate from 15% to 17.50%.

In the published decision statement, TCMB emphasized that the monetary tightening process will continue to establish disinflation as soon as possible, anchor inflation expectations, and bring under control the deterioration in pricing behavior.

The statement mentioned that although global inflation has decreased, it is still above long-term averages and central banks’ targets. As a result, many central banks in the world are continuing their monetary tightening processes.

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