Economy in Turkey: Central Bank’s announces interest rate decision

The Central Bank (CBRT) has announced its interest rate decision following today’s meeting. The bank has raised interest rates by 500 basis points to 35 percent.

The market expectation was that interest rates would be increased by 500 basis points today.

The bank had raised the policy rate by 2150 basis points to 30 percent between June and September.

In September, the official consumer inflation rate was 61.53 percent, while the market participants’ inflation expectations for the end of this year were 68.01 percent, and for 12 months ahead, it was 45.28 percent according to the CBRT’s October survey.

Minister of Treasury and Finance Mehmet Şimşek had announced that they would adjust the policy rate according to the expected inflation to a “real positive interest” level.