Breaking News: Central Bank raises its policy interest rate from 15 percent to 17 percent

The central bank raised its policy interest rate from 15 percent to 17 percent at today’s Monetary Policy Board (PPK) meeting. Following the decision, the dollar / TL fell to 7.56 from 7.67.

The central bank (CBRT) increased its policy interest rate by another 200 basis points to 17 percent from 15 percent. The bank had also raised its interest rate by 475 basis points last month, following the appointment of Naci AGBAL to replace Murat UYSAL.

Following the decision, the dollar/TL fell from 7.67 to 7.56 and the euro / TL fell from 9.33 to 9.22.

The average expectation in the Reuters and forex survey was for a 150 basis point increase.

The president who is known to be strongly against high interest rates seems to be determined to stay out of this area for a while. This would certainly help the image of the Central bank and contribute to a more stable financial market in Turkey, as well as in the eyes of foreign markets.