Ankara - Saba:
Turkey's central bank announced on Thursday a 3.5-point increase in its key interest rate, ending a three-month round of monetary easing in the face of inflation and financial turmoil following the arrest of Istanbul's mayor.
The central bank's Monetary Policy Committee decided to increase the one-week repo rate from 42.5% to 46% and the overnight deposit and lending rates to 49% and 44.5%, respectively.
"The hawkish stance of monetary policy will continue until there is a permanent decline in inflation and price stability," the MPC said.
The growing protectionism in global trade could undermine Turkey's disinflationary trajectory by affecting commodity prices and capital flows, it said, referring to the consequences of global tariffs in response to US President Donald Trump's tariffs on imports.
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