The Central Bank of Türkiye (TCMB) raised its key policy rate by 650 basis points to 15% on Thursday, in a dramatic shift in monetary policy. The move comes as the TCMB seeks to combat soaring inflation, which is currently running at an annual rate of 73.5%, Turanews.kz reports citing Anadolu Agency.
The rate hike was announced following a meeting of the TCMB’s Monetary Policy Committee. In a statement, the committee said that the decision was taken “to improve the efficiency of market mechanisms and strengthen macro-financial stability.”
The committee also noted that the global trend of central banks raising interest rates to combat inflation was a factor in its decision. “The policy of tightening monetary policy will continue in stages – until the situation in the field of inflation improves,” the committee said.
