Posted 12/21/2023, 3:45:00 PM
Turkey's Central Bank Raises Key Rate to 42.5% in Continued Bid to Rein in Soaring Inflation
- Turkey's central bank raised its key interest rate by 2.5 percentage points to 42.5% to combat high inflation of 61.98%
- This was the 7th consecutive interest rate hike to try to tame inflation
- The bank signaled that the rate hikes could soon end as they aim to "complete the tightening cycle as soon as possible"
- The rate hikes came after President Erdogan appointed a new economic team that reversed his previous unorthodox policy of rate cuts
- Analysts say more hikes are likely but will probably halt before local elections in March