Turkiye has raised interest rates for the fifth time since June

A view of the Central Bank of the Republic of Turkiye (CBRT) building in Ankara, Turkiye on July 27, 2023 [Mustafa Çiftçi/Anadolu Agency]

Turkiye’s Central Bank sharply lifted its policy rate for the fifth month running on Thursday as part of its politically charged battle against historically high inflation rates, the Financial Times reports.

According to the report, the Bank said it was taking its main lending rate to 35 per cent from 30 per cent because “inflation readings were above expectations” over the past three months.

The statement also retained a pledge to raise rates further “in a timely and gradual manner” until “a significant improvement in the inflation outlook” is achieved.

Turkiye’s official annual inflation rate peaked at 85 per cent last October and climbed back up above 60 per cent last month.

READ: Turkiye pushes interest rates up to highest level since 2003

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