Creating new perspectives since 2009

Turkiye pushes interest rates up to highest level since 2003

September 22, 2023 at 6:44 pm

People walk past a branch of Halkbank on December 1, 2017 in Istanbul, Turkey [OZAN KOSE/AFP via Getty Images]

The Turkish Central Bank has, once again, hiked interest rates in the country, pushing its policy rate up five points to 30 per cent, in a continued effort to curb soaring inflation, AP reports.

According to the report, the Bank said, on Thursday, that the increase was necessary in the face of services inflation and surging oil prices. It means that the country’s interest rate is sitting at a level not seen since 2003.

The Central Bank said threat of inflation in Turkiye, which rocketed to 58.9 per cent in August, was above expectations in the past couple of months and that to combat the trend, more interest rate hikes are likely.

“Monetary tightening will be further strengthened as much as needed in a timely and gradual manner until a significant improvement in the inflation outlook is achieved,” the Bank said.

READ: Turkey bank regulator dismisses ‘rumours’ after Iran sanctions report