Turkey Ends Rate-Hike Cycle But Keeps Hawkish Bias in Place
- Policymakers raise rate for eighth time in line with forecasts
- Focus now shifts to duration of rates being kept at high level
Photographer: Arif Hudaverdi Yaman/Anadolu/Getty Images
This article is for subscribers only.
Turkey’s central bank raised interest rates for an eighth straight time and signaled it will continue to tilt hawkish after ending one of its longest-ever tightening cycles.
The Monetary Policy Committee led by Governor Hafize Gaye Erkan lifted the one-week repo rate to 45% from 42.5%, in line with the forecasts of all economists surveyed by Bloomberg. In a statement accompanying the decision, the MPC said it believes “the monetary tightness required to establish the disinflation course is achieved and that this level will be maintained as long as needed.”