Turkey's Central Bank Takes Drastic Measures Against Inflation

The Central Bank of the Republic of Turkey (CBRT) made a significant announcement on Thursday, revealing a decision to increase its policy rate, also known as the one-week repo auction rate, from 42.5% to a staggering 46%.

Strengthening the Disinflation Process

The bank emphasized, "Our firm stance on tight monetary policy is accelerating the disinflation process. This is achieved by moderating domestic demand, appreciating the real value of the Turkish lira, and improving inflation expectations. Enhanced coordination with fiscal policy will further support this goal. We will maintain this tight monetary stance until we achieve price stability and a sustained reduction in inflation."

Commitment to Achieving Inflation Targets

The CBRT is committed to halting the upward inflation trend and reaching the 5% target. Recent data shows a decrease in Turkey's annual inflation rate to 38.1% in March, marking a step in the right direction.