Turkey’s Central Bank Raises Key Policy Rate to 15% to Tame Inflation

The Central Bank of the Republic of Turkey (CBRT) has increased its benchmark one-week repo rate to 15% from 10.25% on the 19th of November 2020, in a bid to tighten its monetary policy to ensure price stability, according to local media reports. The 475-basis points hike was reported to be the sharpest increase in two years.

The CBRT raised the November benchmark one-week repo rate from 10.25%, which had stood since September 2020. Prior to this, the rate was held at 8.25% from May to August 2020, following gradual rate cuts from 11.25% in January 2020, according to the CRBT.

The latest decision to hike the rate followed the CBRT’s first policy meeting under its new Governor,...