Turkey’s Central Bank announces interest rate as 42.5 percent

The Central Bank announced its interest rate decision at 14:00 today. The Monetary Policy Committee (MPC) convened under the chairmanship of Hafize Gaye Erkan to make the 12th interest rate decision of the year. At the meeting, Central bank increased the rate by 250 basic points to to 42.5 percent.

The Monetary Policy Committee (MPC) convened under the chairmanship of Hafize Gaye Erkan to make the 12th interest rate decision of the year. It was expected that the CBRT would continue its gradual interest rate hikes and raise the policy rate, which is the one-week repo rate, in today’s meeting.

All economists expected an interest rate hike from the Central Bank.

In June, the CBRT had increased rates by 650 basis points, in July by 250 basis points, in August by 750 basis points, and in September, October, and November by 500 basis points each, totaling 3,150 basis points in six meetings.

It was anticipated that the CBRT will continue its interest rate hikes this month as well, but the rate of increase is expected to be reduced from the previous three meetings, from 500 basis points to 250 basis points this month. Additionally, it is expected that the CBRT will complete the tightening process shortly, as indicated in the previous statement.