Residents wait at a bus stop under a large Turkish flag on Sunday, April 30, 2023 in Istanbul, Turkey.
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Turkey’s central bank on Thursday raised its key interest rate by another 250 basis points to 45%.
The hike in the benchmark one-week repo rate was in line with economists’ expectations.
The rate hike is the latest step in Turkey’s monetary policy makers’ continued fight against double-digit inflation.
Turkey’s inflation rate rose from 62% in November to 64.8% year-on-year in December, and the country’s currency, the lira, hit a record low against the US dollar in early January, exceeding $1 = $30. . first time.
Analysts expect this to be the last rate hike for some time, especially with local elections looming in March.
The central bank’s decision is the latest in a series of interest rate hikes, the eighth in a row since elections in May 2023, but comes as the country faces a dramatic currency depreciation and rising costs of living. It has become a pain for Turks.
The high inflation of recent years is mainly the result of the Ankara government’s stubborn monetary easing policy.
The lira has fallen 38% against the dollar since the beginning of the year and has lost more than 80% of its value against the greenback over the past five years.
This is a developing news article and will be updated soon.