Historic Rate Hike by Turkey's Central Bank

In a decisive move to combat soaring inflation, the Central Bank of the Republic of Turkey (CBRT) has announced a significant increase in its policy rate from 42.5% to 46%.

Strengthening the Disinflation Process

The CBRT emphasized that this tight monetary stance is crucial for moderating domestic demand, appreciating the Turkish lira, and improving inflation expectations. The bank also highlighted the importance of fiscal policy coordination in achieving these goals.

Commitment to Price Stability

With a clear focus on halting inflation's upward trend, the CBRT vows to maintain its stringent monetary policies until inflation sustainably declines towards the target level of 5%. This comes as Turkey sees a slight relief with annual inflation dropping to 38.1% in March.