Turkiye's central bank hikes interest rate to 50%

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’s Monetary Policy Committee decided to raise the policy rate from 45 per cent to 50 per cent, Reuters reports.

The move comes just ten days before local elections are due to be held, with the country’s cost-of-living crisis having been a major issue for President Recep Tayyip Erdogan and his ruling AKP Party.

The central bank said today that Turkiye’s “monetary policy stance will be tightened in case a significant and persistent deterioration in inflation is foreseen.”

Inflation rose to a higher than expected 67 per cent in February.

READ: Turkiye aims to develop smart transportation infrastructure by 2028

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