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Central Bank of the Republic of Türkiye (CBRT) increased interest rates to 15 percent on Thursday, as a part of re-elected President Recep Tayyip Erdogan’s monetary policy U-turn.
There will be further gradual monetary tightening to curb inflation, CBRT said.
“The Committee decided to begin the monetary tightening process in order to establish the disinflation course as soon as possible, to anchor inflation expectations, and to control the deterioration in pricing behavior,” said CBRT Governor, Hafize Gaye Erkan.
The hike is Turkey’s first since March 2021, with inflation decreasing to 40 percent this May.
