Experts predict that next week the Central Bank of the Republic of Turkey may significantly increase the interest rate from the current 25% to 30%. This was reported by the Turkish economic publication. TRTHaber.
The interest rate decision will be made at the Monetary Policy Committee meeting on September 21. According to experts, the regulatory body will increase this rate to at least 27.5 percent, and most likely immediately to 30 percent.
The envisaged decision stems from the adoption of a new medium-term economic development program in Turkey, which includes tight monetary policy to reduce inflation.
Inflation in Turkey increased rapidly in August, reaching 58.9% on an annual basis. exceeding analysts’ predictions. This rate of increase in consumer prices poses a serious challenge to the Central Bank of Turkey in its fight against inflation. The acceleration of inflation was caused by a number of problems, including Turkish President Erdogan’s reluctance to increase the interest rate.
Formerly Central Bank of Türkiye raised Maximum key rate from 2021.