Türkiye hikes policy interest rate 500 points, matching forecasts

After the appointment of Governor Hafize Gaye Erkan, Türkiye's Central Bank ended its 27-month monetary easing cycle and raised rates for the fourth consecutive meeting.

By Tuncay Şahin
A view of the Central Bank of the Republic of Türkiye (CBRT) building in Ankara, Türkiye on July 28, 2022. / Photo: AA / AA

The Central Bank of Türkiye on Thursday raised its policy rate by 500 basis points to 30%, meeting market forecasts.

At its August meeting, the bank hiked its policy interest rate 750 basis points to 25%. It pledged to continue the monetary tightening process to help bring down inflation.

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According to the latest data from TurkStat, Türkiye's annual inflation rose to 58.94% in August, up from 47.8% in July.

After the appointment of Governor Hafize Gaye Erkan, the bank ended its 27-month monetary easing cycle and on Thursday raised rates for the fourth consecutive meeting.