Central Bank announces interest rate decision for November 2023: New interest rate fixed as 40 percent

The Central Bank increased its policy interest rate by 500 basis points to forty percent with an expected decision it took at its meeting today.

The Central Bank’s (CBRT) Monetary Policy Committee (PPK) has announced its interest rate decision. The Board increased the policy interest rate by 250 basis points to 40 percent. In the surveys conducted before the decision, the expectation of economists was that the CBRT would increase the interest rate by 250 points.

Now, the markets are concerned about further increase in dollar / TL rate which effect the Turkish economy in a negative direction. Moreover, despite the new increase the interest rate is still below current inflation rate. This certainly does not make the Turkish lira an attractive investment tool for citizens – allowing the dollar to further increase against TL.