Turkish Central Bank Raises Interest Rate to 46%

The Central Bank of Turkey raised its benchmark interest rate by 350 basis points on Thursday, April 17, in line with market expectations.

According to the bank’s decision, the interest rate has increased from 42.5% to 46%.

In its official statement, the Central Bank explained that the continuation of a tight monetary policy stance aims to support the ongoing disinflation process through the moderation of domestic demand, a real appreciation of the Turkish lira, and improvements in inflation expectations.

The bank emphasized that moving forward, enhanced policy coordination will significantly contribute to these efforts.

The statement also reaffirmed the bank’s commitment to maintaining a tight monetary policy until lasting price stability is achieved, driven by a sustained decline in inflation.

Furthermore, it added that all additional monetary policy decisions will focus on reversing the upward trend in inflation and steering it toward the official target of 5%.

As of March, annual inflation in Turkey had slowed to 38.1%.