Türkiye leaves policy rate unchanged at 45%

Türkiye’s central bank decides to keep its key interest rate steady at 45%, halting robust rate hikes to address soaring inflation

The Central Bank opted to maintain its key policy rate at 45% during Thursday’s Monetary Policy Committee (MPC) meeting, signaling a pause in the eight-month tightening trend.

The decision comes under newly appointed governor Fatih Karahan, who was appointed after former chief Hafize Gaye Erkan resigned. 

The central bank, having raised rates by 3,650 basis points since June 2023, will continue the current policy stance unless a sustained deterioration in inflation occurs. 

Türkiye’s year-over-year inflation reached 64.86% in January, with a year-end projection of 36%.

Karahan emphasized that there is no immediate need for further hikes but pledged a review if the inflation outlook worsens in the future.

Source: Newsroom

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